After almost two decades writing for financial advisers (and 10 years writing this column), it’s time to do something new.
Being a journalist gives you an unusual view, being able to see both the consumer and the industry side of this business.
It gives you access to information and people (senior regulators, chief executives and so on) that you would not normally speak to. Here’s what I know.
Most advisers are well intentioned
I’m not saying most are good – it is impossible to make that judgement as I don’t get to see outcomes of clients – but as far as I can see most advisers, and in particular financial planners, care passionately about doing the right thing.
They want their clients to have a richer and stress-free experience and that is the major asset the entire industry has going for it.
But the awful ones are really awful
From firms that charge exit penalties, have limited panels of underperforming funds, vague terms and conditions, to those who care more about assets under management than client outcomes – bad firms that cost their clients money are everywhere.
Be proud of the fact that your services cost money and show-off about why you are worth it.Particularly unpleasant are the advisers who also have side businesses in unregulated investments. These firms are letting down the entire industry and costing consumers an absolute fortune.
Be confident about what you offer
In this age where everything is available online in an instant, where transparency and accountability are paramount, your fees must be front and centre of your advice proposition, clearly available and easy to compare.
It’s no good arguing that ‘every client is different’ because financial advice is an added-value service. If clients can’t see what they are paying upfront they can’t assess your worth.
You are providing something that your clients do not have the time nor the expertise to replicate. Be proud of the fact that your services cost money and show-off about why you are worth it.
Blow the whistle
The British Steel scandal was one of the few occasions I can think of where wrongdoing was called out by advisers – but even then it was only a handful of individuals.
For years rogue advisers, and particularly introducers, operated and almost no good firm without being called out. This must change. It’s time to be on the right side of the argument.
If you care about your profession you must be more vocal about those that are doing harm at the moment they are doing it.
You need better advocates
Financial advisers need to have a functioning trade body that understands their needs and lobbies in the corridors of Westminster on their behalf.
Almost every scandal I can think of has one thing in common: commission.It seems most of the time the work of advisers is championed by investment and insurance trade bodies – that’s an unsatisfactory situation because it makes you seem like their flunkies, when actually you should be advocates for the consumer.
Advisers are not getting the representation they deserve.
Incentive is everything
From annuity mis-selling, to pensions, PPI, structured products, endowments and pension transfers, almost every scandal I can think of has one thing in common: commission.
Poorly structured remuneration is at fault for most examples of poor conduct. Be careful.
Ignore Twitter
Social media is great for many things, but as a measure of public opinion it is very poor. It is a world full of like-minded voices, reinforcing your own opinions and bile.
Journalists are not there to do your PR – that’s your job.Don’t get caught up in it because it removes you from your the real world of being a champion for your clients. It can only make you look bad.
And finally...
The press is not out to get you. Really, it’s the truth. But also journalists are not there to do your PR – that’s your job.
Most of the time when I see complaints about a newspaper story, it is about what an ordinary person has done or advice given to them, but the journalist gets the flak for reporting it. Who is the villain here?
If you don’t think a journalist has done a good job tell them politely in a way that you would like to be told. If you want better press, then tell the press.
A thank you
You’re nothing as a journalist without your contacts. So a word of thanks to all those named and unnamed advisers and industry experts who have taken the time (often hours and often late at night) to patiently explain complicated issues to me, and give tip-offs about what some firms were up to.
My opinions – many of which have changed over the years – were always my own, but your advice and words of caution were always what informed them. Thank you.
James Coney is money editor of the Times and Sunday Times
