'Day the profession stops trying to reinvent the wheel will be the day we stop wasting time'

Hoskin, who through her firm Standards International, promotes markers of excellence such as the ISO 22222, says any "true profession" is characterised by universally accepted standards, qualifications and a commitment to global best practices.

A failure to adopt such established standards means it will take longer for the industry to get to where it needs to be.

In a Q&A with FTAdviser In Focus, Hoskin outlines her seven "pains" in advice firms and explains what advisers can do to stay at the top of their game.

The day the profession stops trying to reinvent the wheel and adopts well-thought-out and established frameworks of excellence will, in my view, be the day that we finally stop wasting time.

FTA: What makes a good advice firm?

MH: Isn't this just the million-dollar question. For me, a good advice firm is one that places its clients at the heart of everything it does. And when I say "client", I don't just mean the external client… I mean the internal 'clients' too.

This, of course, means not only providing an amazing client journey, one which fully understands the unique needs, aspirations and circumstances of each client, but also having that same depth of understanding for their team.

Great advice firms tailor their approach to those they support, taking into account any special considerations and vulnerabilities that may be present.

Furthermore, a leading firm recognises and embraces the importance of striving for efficiency and effectiveness at all times. It invests in its people, fosters a culture of continuous learning and professional development, and it also leverages technology to streamline processes, improve service delivery and enhance client and team engagement.

FTA: What's your assessment of the state of the current advice market?

MH: The current advice market is evolving, with significant strides made towards professionalising the sector. However, there is still work to be done.

A "true profession" is characterised by universally accepted standards, qualifications and a commitment to global best practices. While we are seeing the introduction of standards like BS 8577 and ISO 22222, which are raising the bar for professional practice, the sector has sadly not yet caught up with this level of operational innovation.

The day the profession stops trying to reinvent the wheel and adopts well-thought-out and established frameworks of excellence will, in my view, be the day that we finally stop wasting time and truly start reaping the rewards of years' worth of "seed sowing".

The journey towards becoming a true profession involves not only adopting these standards but also fostering a culture that values ethics, integrity, and client-centricity.

FTA: How can advisers ensure their firm is and remains the best it can be?

MH: Advisers can ensure their firm remains at the top by embracing a culture of high standards (not just academically but also from a business perspective) and continuous learning and improvement for its greatest assets.

This involves staying updated with business, client and workplace trends, regulatory changes, and advancements in financial planning tools and strategies.

The us vs them vibe in a team will rip it apart faster than you can blink

Investing in professional development, such as training and certification, is crucial for enhancing the skills and knowledge of the team.

Regularly reviewing and refining processes and systems helps to identify areas for improvement and implement necessary changes. Seeking feedback from clients and the team and using it to enhance their client and employee journey is another key strategy.

FTA: What's your most helpful advice you tend to give to advice firms?

MH: In my view, the most important message that I find myself repeating time and time again is: "Focus on culture, communication and your clients." There it is again… internal 'clients' too, not just the external ones.

Culture because it is who you are, the essence of your business, its personality, its values and its beliefs. Get this right and you will be rocketing, get it wrong and my advice would be to head for the bunkers.

Communication — it is and has always been "good to talk". Too many assumptions exist in firms today and unless I missed it, I don’t recall any of us gaining the "mind reader" superpower along the way. The us vs them vibe in a team will rip it apart faster than you can blink. "United" is the only way to achieve the greatest goals.

Attracting and serving the next generation of clients requires a shift in mindset and approach.

Finally, clients — let's focus on the internal "clients". If they were given the same amount of time, love and resources that are given to external clients then we wouldn't have the recruitment pandemic that we have today.

Team members up and down the country are crying out to be recognised and rewarded for holding the fort, delivering on the promises of the business, going the extra mile and quite frankly keeping the lights on.

Oh, and it's not just about recognition, it’s about trust, support, time and progression. But when they ask too often the barrel is dry.

FTA: Where are typically the problem areas?

MH: Well, if we start with the above you can then add on the rest of what I call The Seven Pains. These include a lack of buy-in from their teams; inadequate leadership and management skills; no clear vision or mission; very few thought-through and clearly defined processes and procedures; under-skilled and under-developed team members; ineffective workflow and task management systems; and inadequate technology and tools in place to do the job.

While these problems can be quite debilitating and damaging for the firms and the team, they are easily fixed once identified.

The biggest problem links to a few of the points above — advisers and planners that run firms continue to apply the same knowledge and skills to their business that they do to their external "financial planning" client relationships, and unfortunately they are two different jobs needing a different set of skills.

Experts are needed to deliver great financial planning and advice and the same can be said that experts are needed to transform a firm from surviving to thriving.

FTA: What's the key to a successful client relationship?

MH: Trust is the cornerstone of any successful relationship. Trust is hard to build but easy to break down because it is built through transparency, clear communication and consistently delivering on promises.

It's about showing that you understand, care, have heard, and have their back. Regularly checking in with the clients, seeking their feedback and demonstrating a genuine interest in their well-being can go a long way in building trust.

FTA: How can an adviser effectively assess the value they provide to their client?

MH: We all know that assessing the value provided to clients goes beyond financial returns. It involves looking at the broader impact of the advice on the client's life.

This could include increased peace of mind, confidence in financial decision-making, progress towards life goals and what I consider most important: empowering the client to "own" their life and decision-making.

Regular client check-ins and surveys can provide valuable insights into a client's expectations, satisfaction and perceived value.

FTA: How well are firms equipped to attract and serve the next generation of clients?

MH: Attracting and serving the next generation of clients requires a shift in mindset and approach.

Younger clients are tech-savvy and expect seamless digital experiences with minimal obstacles to accessing what they want, when they want it. They value transparency, social responsibility and personalised service.

Firms need to invest in technology that enhances digital engagement, adopt more flexible and transparent fee structures and demonstrate their commitment to social and environmental responsibility.

They also need to understand the unique needs and preferences of this demographic and tailor their services accordingly.

carmen.reichman@ft.com