It’s been a turbulent 12 months for the financial advice profession. Life post FoFA is driving significant change and planners everywhere have faced huge challenges to make the necessary investment to function effectively in an increasingly regulated space. FoFA implementation has been costly, but any change that protects our most valued asset is to be welcomed. The client, of course, is the ultimate beneficiary of these changes.
If we are to grow as a profession, we must be visionary enough to embrace such change and continually push to develop our service, while enhancing our education to be in the best position to service our clients.
A recent survey titled, ‘Investment Trends Planner Business Model Report’, revealed that although 2012/13 has been a challenging year in both the adviser space and in a broader macro-economic sense, the majority of planners are still optimistic about the future. Of the planners surveyed, 75% believe that the current business environment is challenging but improving, with 41% claiming that there are opportunities for well run businesses.
Undoubtedly, the administrative and compliance impact post July 2013 has been considerable, particularly around fee disclosure statements. If this research is to be believed, planners must dedicate resources to these crucial areas, stay focused on client engagement from both a retention and acquisition standpoint, and provide more holistic offering.
Client engagement does not necessitate significant financial investment but more an understanding of what is important to existing clients and pushing these messages into the marketplace. If done effectively, this can create a ‘word of mouth groundswell’, driving positive associations for your personal or company brand, as well as, driving a significant uplift in client enquiries.
Thankfully, we know our clients and our intimate knowledge of what they want or expect will ultimately shape the messages we convey to the wider market. People will respond, particularly when the message is framed within local communities, using case study material and success stories. “That sounds like me!”, “I have similar financial problems!”, and “Perhaps this planner can help me achieve the same outcomes so I can reach my lifestyle goals?” The best marketing tool we have at our disposal is not an unlimited advertising budget, first class PR agency, expensive website or army of BDM’s – it’s our existing clients telling their story to friends, family and colleagues.
We know that change is inevitable. The smart money is on those that prepare, not necessarily by making huge financial investments in marketing, systems and technology, but by never losing sight of the most important goal – delivering the best advice to their client. With this as a constant reference point and the application of continuing education and development, our profession has the potential to be recognised for all the right reasons and to finish the year on a high, carrying valuable momentum into 2014 to help even more clients change their lives for the better.
Mark is the Chief Executive Officer of the Financial Planning Association of Australia (FPA) and a Certified Financial Planner professional. Following a 25-year financial services career, he was appointed by the FPA Board in 2010 to lead the FPA in raising the standing of Australia’s professional financial planners.
