What are the key issues that are on your radar as a financial planner? Based on his discussions with advisers, BT Select MD Phil Butterworth reveals five concerns that may sound familiar – and offers some tips on how to deal with them.
Your value proposition
Butterworth explained that how to present and fine tune a value proposition to clients is high on the radar of many financial advisers, “and then defining from there their fee structures within their value proposition to their clients”.
He added that advisers are seeking to re-engage with clients at the moment to discuss where they sit today and how they can assist them on their journey towards financial stability.
Getting FoFA ready
Taking this client-centric focus feeds into having to be aware of FoFA implementation issues, added Butterworth.
“A lot of that is also moving their business away from any volume-based related payments, and putting in the right processes, documentation and workloads to ensure that they’re ready for the FoFA environment. That seems to be a real drive,” he said.
If you’re a practice owner, Butterworth suggested that this will involve taking a look at the people within your practice to make sure they have the right talent and education levels to keep your business FoFA compliant – as well as putting in place a development plan around the business.
APES 230 transition
Accounting-associated businesses will be more than aware of the dreaded APES 230 regulations, and may well be fretting about making sure that they’re all set to comply with the new rules.
“We’ve just got to see how that evolves and assist the practices who fall into APES 230 with the transition,” said Butterworth. “We’ve basically developed a transition plan to assist them into that world.”
Providing a relevant service
In determining how to present your value proposition, you should consider surveying customers to make sure that your service is still relevant to your client base, suggested Butterworth.
A relevant service package can then be designed and appropriate price plans written.
“So they don’t start with the price and work back as to what they have to do for that,” said Butterworth. “The whole process starts at the client level, in either forum environment or a mixture of forums with advisers and surveys.”
Fine-tune the experience
Finally, Butterworth suggested that a certain amount of fine tuning will need to take place with valued existing clients.
“Scaled advice probably will fall into that at some point, but generally practices will already have a fairly strong ongoing relationship with the client at all levels – as opposed to looking at a client base from the low-touch through to the high-touch,” he said.
“It’s more fine-tuning their existing model and how they deliver it, as opposed to working out how we service the low-touch clients.”