Clearly, a sole trader who works alone will not have a business colleague to challenge his or her thinking.
Buddy up with another sole trader and share ideas. Or use a paraplanner for a specific project and allow them to challenge your thinking on product selection or client advice processes.
Equally, even if you do work alone, it is a good discipline to sit down away from clients, phone calls and emails and take some time to think through whether there is a better way to do things.
This process can also include challenging ourselves about whether the products we use remain fit for purpose.
When considering platform advice we know that platform implementation is likely to be a longer term decision than for many other products, but that is no reason not to regularly consider whether there have been any changes in terms of market participants, pricing changes, proposition enhancements, or corporate actions, including ownership battles or annual results, which might cause a re-think.
Advisers are likely to choose only a small number of platforms, maybe two or three, to meet the needs of their various client segments.
So, starting with an analysis of your current client portfolio is going to be an essential first step in the due diligence process.
The regulator has noticed that some firms can tend to identify client segments which reflect their aspirations rather than reality.
This is to say, firms have been known to undertake due diligence for the clients they would like to have, rather than the ones they actually do have.
This means that firms wishing to deal with clients with over £250,000 to invest may be more likely to favour different cost structures and investment facilities than if they were sourcing a suitable offering for their current clients who more typically have around £100,000 to invest.
An older client portfolio, typically with pension funds and approaching retirement is more likely to benefit from platforms which can seamlessly move from accumulation to decumulation, avoiding extra administration or investment costs.
On the other hand, if your client portfolio is typically younger then such criteria could be less relevant at an earlier stage in the accumulation process.
As part of the platform implementation process, advisers are considering which providers are likely to be suitable partners for relationships which could continue for a number of years.
However, even though the intention is that a selected platform is likely to remain in place for several years, advisers should implement an ongoing process which reviews that selection procedure and whether other options have subsequently become more appropriate.
New entrants may enter the market, or new charging structures could be more suitable.
