Getting ready for the RDR was a difficult process for all those who didn’t fit into the smug ‘I was ready 10 years ago’ camp. But, if you’re reading this, you must have come through the other side (unless you gave up advising on 31 December 2012 but still want to read my sparkling blogs anyway).
For those still in the industry, there is a set of ‘leading advisers’, according to Standard Life, who have built strong business models and will – or have – made a great success of themselves in the post-RDR world. But what exactly is the criteria and do you make the grade?
1. Strong leaders with a consistent vision, who set clear direction and expectations
If you’re a one-man-band, you probably don’t have to worry about anyone else’s visions getting in the way. This point is all about having someone at the front, setting an example and letting everyone in the business know what is expected of them. You can’t expect everyone to be mind-readers.
2. Employees who put the firm’s interests before their own
If your staff are sloping off at 4:30pm with half their work unfinished, there’s probably a problem and that will probably come through to clients. But employees who put the firm’s interests before their own are doing so because they believe in what they do, and clients will see that.
3. The structure of the business follows its strategy
Seems fairly obvious, but having a plan and following it through are not the same thing.
4. Clarity of who and what the business is
At the launch of this research, Standard Life said that many firms are now putting their business branding way ahead of anything else. It is more important get the name of the firm in than highlight whether it is independent or restricted, for example. Although this is not all it takes to establish a brand, it can help to focus on what the business really does.
5. Embracing regulatory change
Advisers who deny regulation until the last possible moment – and then try to find a way around it – will never be leaders in the advisory sector. Even if you don’t agree with it, embracing regulatory change and making it work for you sets advisory companies apart.
6. Clear, regular and open communication with both clients and employees
This, of course, goes along with the whole fee transparency thing. The business of financial advice isn’t for playing games and obscuring prices; it’s for doing what’s right for the client.
7. A culture of continuous improvement and operational excellence
This is something we covered in our latest Adviser Toolkit: sitting still does not make for a good business. Have a strong structure in place by all means, but, according to SL, the best companies were always encouraging their staff to take exams, expand their knowledge, look at new ways of doing things.
So do you make the grade, or are other elements more important to you for delivering good financial advice?
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