Clients’ needs remain the same

By coincidence, it was almost exactly 30 years to the day that I had spoken at a similar conference entitled ‘Survival’, where speakers tried to predict what the impact of the impending regulation would be.

I do not think any of us got it quite right, though I did forecast that the banks, building societies and product providers would find it more difficult to cope with regulation, and the smaller, more agile advice firms delivering high-quality personal advice and service, would be the long-term winners. This has definitely proved to be the case.

We all now know that as a result of regulation, everything has changed dramatically in financial services – yet at the same time nothing is really any different.

Thirty years ago, consumers faced the twin financial planning problems of living too long or dying too soon. Today, for all the changes that have taken place in the regulation of financial advice, the fact remains that the challenges faced by our clients remain the same.

All the evidence shows that consumers who benefit from sound financial planning advice are not only better prepared to protect their families if tragedy strikes, but they also set more aside for their later years.

Thirty years ago, however, there were some 250,000 financial advisers available to help clients plan their financial futures while now, after years of regulation, we have fewer than 25,000.

Consumers who benefit from sound financial planning advice set more aside for their later years

It is no surprise, therefore, that more people protected their families through life assurance and saved more for their future years.

True, most products were a bit more costly and many advisers less well-trained than today, but the vast majority worked hard to do the best for their clients.

Equally, as is clear from the Financial Advice Market Review (FAMR), most commentators, including the Treasury and the FCA, agree that while the better-off are well-served by the adviser sector, nobody thinks regulation has succeeded when good quality advice is virtually inaccessible to the great majority of consumers.

I believe that we can look forward optimistically to the outcomes of FAMR. We must, however, keep in mind that even if everything changes, nothing will change as far as our clients’ needs are concerned, as they will still need our help to face the challenges of living too long or dying too soon.

Ken Davy is chairman of SimplyBiz Group