Jeff PrestridgeSep 19 2018

Opening the cellar doors

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Opening the cellar doors
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The Cellar Club, sadly, is a rare breed these days. It is a select group of financial advisers and planners who meet over dinner most months of the year.

They exchange gripes – about the regulator, Financial Ombudsman Service, rogues and the almighty might of St James’s Place plc.

They chew a bit of financial cud (and in the process some mighty fine food) and listen to some expert sing for their proverbial supper (strangely, you might feel, that is where I come in).

All somewhat agreeable and every one of the club’s members goes home happy, feeling a little less isolated and a lot more loved than when they pitched up beforehand. Therapeutic. Strength in numbers.

The Cellar Club, based in Birmingham, is one of the few informal adviser groups that keeps going. Others have sadly withered on the vine through lack of support and dwindling adviser numbers.

Amazingly, the club, founded by Paul Etheridge (of Prestwood software fame) and Alan Smith (ex Aston & Partners), is now 44 years young. Under the astute leadership of Mark Rogers (part of the Succession Group), it seems as if it could keep going for a lot longer.

They believe that despite mountains of regulations, professional exams and CPD, rogues can still flourish.

Yes, it highlights some of the problems that are impacting upon the adviser community. For example, too little young talent coming through the adviser ranks and a lack of female representation.

But the Cellar Club is a force for good. We estimated somewhat crudely that the 18 individuals sitting around the table (16 if you discount myself and the organiser of the dinner) manage clients’ assets in excess of £5bn.

A lot of long-term wealth being managed with care and attention. Not an exotic or toxic investment in sight.

Over the years, I have accepted numerous invitations to speak at the club. It has never been an easy experience given some of the criticism I have heaped the industry’s way.

But the more times I have bared my soul before them, and the more the adviser sector has moulded itself into a professional unit, a mutual respect has formed.

The members of the club value my fourth estate views, but challenge me all the way. In return, I get the opportunity to learn of the issues they are facing at the proverbial coal face.

Some may say that I am going soft and have mellowed in my 50s. But that is not the case. It is just that the adviser industry is a far cry from the one I observed in the 1990s and early 2000s when commission ruled the roost.

What I love about going to the Cellar Club is that spades are called spades. Indeed I would argue that some of its members are more critical of their own industry than acerbic financial commentators.

They believe that despite mountains of regulations, professional exams and CPD, rogues can still flourish.

"Eighty per cent good, 20 per cent bad" was the statistic thrown at me by more than one of the members as I chomped through my starter of monkfish (wild mussel, champagne and samphire) and main course of halibut (courgette, sweetcorn, caviar and chive).

I was somewhat astonished although I kept being reminded about the British Steel Pension Scheme mis-selling debacle.

Standing up in a penguin suit after wining and dining is never easy, especially after the Pouilly-Fumé has taken effect. But I gave it my best shot as I described some of the issues either vexing readers of The Mail on Sunday – Brexit, scams and pensions – or on my personal finance radar.

It was a speech nervously presented and warmly received although I was somewhat distracted by one gentleman booking a hotel for the night on his phone while I pontificated away.

Sometimes public speaking leaves me euphoric. On other occasions, I wonder whether it is worth all the sweat and tears.

I certainly was not able to sleep afterwards in my Premier Inn room overlooking the canals that dissect the fine City of Birmingham. Was I good enough? Was my delivery too wooden? Did I crack enough jokes?

Journalists spend too much time these days desk bound, firing off emails rather than talking face-to-face with people and financial experts. So it is always good to get off your backside, meet financial advisers, listen and learn. It makes you a more informed personal finance journalist.

As for the Cellar Club, I do hope it continues to prosper and knock up its half century. It would be fantastic if its continued success sparked other advisers to set up similar informal groups. In a disparate industry, the Cellar Club really is a force for good.

And before you ask, the dinner was held at Adam’s on Waterloo Street. Michelin-starred and run by the hugely talented Adam Stokes. Give it a try the next time you visit this revitalised city. But check you have enough credit left on your plastic.

Jeff Prestridge is personal finance editor of the Mail on Sunday