'In the advice space, silence creates questions'

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
'In the advice space, silence creates questions'

There is no magic formula to running a profitable advice business, but adhering to certain principles can help.

For Openwork, the key to success rests on a partnership model, to which it rebranded last year, pledging to place clients at the heart of its business and working together to deliver growth.

The advice company has more than 4,000 advisers and currently manages £10.65bn of client money. It has been awarded the Best Companies accreditation for the past two years.

Setul Mehta, head of business development and adviser services at The Openwork Partnership, tells FTAdviser In Focus about what drives business at the company and why it chose to restructure as a partnership.

Setul Mehta is head of business development & adviser services at The Openwork Partnership
There are always things that can be improved, but lots of good groundwork in the early years has led to The Openwork Partnership being a great company to work for.

 

FTA: What is the secret to running a profitable advice business?

SM: There’s no magic formula beyond sound business practice: (a) provide the right level of support at the right quality, (b) have an eye on emerging and changing practices, (c) have the right commercials in place to make it attractive and safe, (d) don’t deprioritise governance. 

When that all works you can elevate the support you provide by creating value through robust marketing, business development, management information, training and development, and technology. 

Finally, and the most important, communicate with advisers, back-office staff, partners and clients regularly and consistently. In the advice space, silence creates questions (even when there aren’t any), so there is nothing more comforting than knowing you are being engaged. 

FTA: Why did you change your business model to a partnership?

SM: In essence we have always been a partnership, but following our independence when we became a wholly-owned business between advisers and colleagues, it created the first step of being a true partnership between these core stakeholder groups. 

It was only natural to then incorporate that spirit into our name, vision, and values. Our organisational promise is ‘To make it easier to face the financial future with confidence and optimism’ – at the heart of this is working in partnership with each other. 

FTA: How has this new model changed how you work with your advisers?

SM: With a partnership there is a two-way accountability, so not only do we collaborate with each other, we also hold each other accountable for the standards we all expect to ensure clients get the advice they need. 

We actively involve advisers – and where appropriate clients – in new initiatives to help grow client outcomes through improved propositions and services. There is a great feeling of ‘one partnership’ because of this change. 

FTA: You have been awarded the Best Companies accreditation – why are your staff and advisers happy to work for you?

SM: We’ve been fortunate to be recognised for our well-established culture and behaviours. This is borne out of a strong work ethic, a strategy that everyone is working towards and supporting, and most importantly, being able to see first-hand results generated from the activity that takes place. 

More clients than ever before are purchasing their first property with protection cover; clients are seeing their savings and investments grow, whilst engaging in bucket-list moments and still having enough to ensure a retirement to suit their needs.

The Openwork Partnership has already embraced RDR, TCF, MMR and Vulnerable Clients, all of which have set up many of the building blocks of the practice that consumer duty talks about.

Intergenerational wealth conversations are bringing together families, creating open financial conversations. Colleagues are proud to share their Openwork Partnership journey as well as recruiting others to work for our organisation. 

There are always things that can be improved, but lots of good groundwork in the early years has led to The Openwork Partnership being a great company to work for. 

FTA: Is there a link between a good working environment and the profitability of an adviser?

SM: 100 per cent yes. If an adviser is getting the support they need, is able to close down their queries quickly, is able to use technology to engage with more clients and is able to operate in a safe environment, it means they can do what they do best, which is engage with clients and give them the financial security they need. 

When these things don’t happen, it means processes slow down, which can delay advisers’ engagement with clients and risk them going elsewhere. It also creates a service that people are not proud to be associated with, which will have a negative impact on client outcomes and ultimately profitability.  

FTA: What has Openwork learnt from running a more conventional network in the past – any regrets?

SM: No regrets, it’s all learning. We were a single manufacturer and distributor, which meant a much simpler model and value chain. We collaborated, just not to the extent we do today. We were more insular in our approach, whereas today we work extensively with our industry peers and bodies. 

Our advisers have access to more support, and that support relates to a greater number of positive client outcomes.

FTA: If an adviser comes to you for help on building a profitable advice business, what would you tell them?

SM: We’d offer our support for making a plan along with how we can work together in trying to get them to where they want to be; whether that’s a business they wish to sell in 10 years’ time or one that they want to build, maybe to allow them to work four days a week throughout their working life or to build a business with 1,000 advisers. 

If they already have a plan, we’d work with them to review it and help ensure they have the constituent parts they need to be able to deliver it and how the partnership can offer support with this. 

It is a very similar approach to how many advisers will approach their client conversations. 

FTA: What impact will the consumer duty have on how advice companies operate?

SM: For many of our firms, much of what the consumer duty paper discusses will already be in place. For a few others, it may require a slight shift in mindset to ensure their focus, first and foremost, is on the client. 

The Openwork Partnership has already embraced RDR, TCF, MMR and Vulnerable Clients, all of which have set up many of the building blocks of the practice that consumer duty talks about, and we aim to ensure we aren’t operating in a transactional environment, but one based on client experience and outcomes.

Our advisers run great businesses both in terms of profitability, but also with a client outcomes lens on – which is what consumer duty is at its heart. 

carmen.reichman@ft.com