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By Holly Black | Published Sep 07, 2012

Take 5: Communicating the RDR

As if advisers did not have enough to do before January 2013, they also need to tell their clients about the changes the RDR will bring. Preparing in advance and being clear are some of MM’s top tips for getting the message across.

1. Start early. The RDR is just three months away and any adviser that has not broached the subject in some way with clients by now is starting to leave it a bit late. Initial communications could be something as simple as a letter or leaflet, with a promise to discuss any changes in full at the next review meeting.

2. Explain the bits that are relevant. If you already have the highest level of qualification, there is little point in telling your clients that advisers across the board are improving theirs as it might raise a question mark when yours don’t change.

3. Be clear about what you’re doing. Try-before-you-buy or getting halfway through the process is a waste of both adviser and client time. By communicating your proposition clearly you will attract only clients that are suited to your style, increasing client satisfaction and retention.

4. Show the client where the value is. Research has found that one of the most difficult things advisers find to communicate is where the value is. It is tricky to put a flat price on advice, so it is important to show the work that goes in behind the scenes that contributes to the overall fees.

5. Use all the tools at your disposal. Obviously it is an adviser’s responsibility to tell his client about forthcoming changes, but the entire burden is not his. The regulator, along with many product providers and trade associations, have all come up with literature and tools that can help you get the message across – use it.

More top tips from Money Management

Take 5: Investing in absolute return funds

Take 5: Selecting a SIPP

Take 5: Assessing a client’s risk level

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