OpinionMay 15 2013

Good majority tainted by the greedy minority

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I spend 1 per cent of my time looking for clients. The key is attracting profitable clients and creating an environment where clients come to you.

The public has not disengaged with advisers; they do not know what they do not know and they are completely happy in their ignorance. Every good adviser can recall client scenarios when the penny finally drops and the client is embarrassed by their previous ignorance and wasted opportunities. Lordy lordy, they have found religion.

I think part of our job has always been education. The sad fact is that I see very few new clients so I am not really helping. As our adviser numbers fall, the education for the public will all but disappear. Given the fact that I am very busy, why would I target the masses as opposed to the high net-worth?

Some advisers hate the concept of commission because they cannot sell. They could not influence anyone into action. That is why they are desperate for a professional label – those advisers need 100 per cent fees because they probably do very little except shuffle the cards.

Mr O’Donnell’s article’s first paragraph read: “Do the regulators hate the adviser sector?”I can see how some people came to that conclusion; certainly the regulators’ ranks do include failed advisers and pure academics – it does seem an institutionalised environment. It is extremely difficult for them to understand business, profit or real proactive advice. The brilliance of some advisers is beyond their comprehension because 99 per cent of their contact is with the dishonest and greedy minority. It colours their view of our industry. They need interaction with some of the really good majority.

Paul Scott

Senior financial adviser

Scott Financial

Hartley Wintney