He said high-profile malpractice stemming from the banking sector, which has become common knowledge due to extensive media coverage, has brought about the erosion of public trust in those who operate within the financial sphere.
Mr Read added that financial advisers could learn a valuable lesson on this from door-to-door salespeople who mis-sold financial products to receive juicy commissions.
He said: “Dodgy doorstep lenders prey on vulnerable people and encourage them to take up unaffordable debt, yet many of their clients trust them and even regard them as friends. How do they pull this off? It is simple. They know their clients’ weakness and exploit it, but they make their clients believe that they are being helped.
“In the process of chatting to clients, they find out when family birthdays are or when clients plan to go on holiday. That tells them when clients might need extra cash.
“Clarity and honesty is what clients want. The Association of British Insurers said companies should use language which helps customers understand their options, and that makes perfect sense.”
Myron Jobson is features writer of Financial Adviser
| Key Points |
A challenge for many advisers is how to deal with low net-worth clients while maintaining commercial viability. Advisers can increase the number of high net-worth clients by encouraging clients to refer them to a friend, family and their associates. High net-worth clients are heavily influenced by factors that may be considered superficial to others. |
