Financial advisers fail to attract new clients

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The majority of baby-boomer advisers fail to attract new clients, because they don’t really want to, says Branton Mannix Consulting director Damian Hartley.

Hartley addressed the issue raised by an adviser that the industry had too many “minders” and not enough “finders”. He put the case down to three factors:

  1. Pre FoFA advisers received commissions so don’t need to be proactive if they don’t want to be.
  2. Many can’t articulate their value proposition effectively and therefor are reluctant to pursue new clients.
  3. Marketing is not recognised as a strategic function of the business and is therefore hardly documented, let alone pursued on a consistent basis.

He also said there was a lack of planning when new financial advisers were hired.

“New advisers often join existing practices with a view to becoming “client facing” advisers yet find that this doesn’t happen for any number of reasons,” he said.

He put this down to the practice principal and the new adviser having alternative ideas on what was expected of the role, and that this could be fixed from the outset with proper planning before the job was advertised.

What's your stance on attracting new clients, and will FoFA force advisers to be more proactive?

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