IFA  

How to be a financial adviser in a changing political landscape

  • To learn more about how to meet the challenges of being a financial adviser
  • To understand the impact of Brexit
  • To see the importance of the FCA Register
CPD
Approx.30min

“If you are sitting with the ultra-high net worth, and your income is delivered by yield, you are just sitting this through.”

William Stevens, financial planner at Killik & Co, says the conversation that financial advisers need to have with their clients should be around stressing the importance of long-term planning.

He says: “We make sure clients are setting aside enough cash so they can meet their requirements over the next couple of years.

“If you do lose 10 per cent of your portfolio because of any problem with Brexit, is that a problem?”

In terms of weathering the immediate storm and fallout of Brexit, Mr Roberts says: “I genuinely believe if you have a one-year or two-year need, most people now say the solution is cash.”

David Painter, chartered financial planner at AJ Gallagher, says there will be many short-term challenges for advisers as a result of Brexit and clients panicked by what they are seeing on the front pages of national newspapers or who have plans they do not want to change.

He says at the end of last year he had to sit down with a client who wanted to go into drawdown in April 2019, just days after the UK is supposed to finally exit the EU and another client who wanted to move a lot of their investments into cash.

Given the turmoil of recent years, Mr Painter says working with the client to explore their concerns and documenting why they may want to go down a certain route at this time will be key to making sure advice given in 2019 does not come back to haunt you.

Rise of the robos

Given that demand for advice has never been greater yet the supply of human advisers has failed to keep pace, it is unsurprising providers and advisers continue to turn to technology to bridge the gap.

Last year saw several providers looking to add a human element into robo-advice and BWD’s gathering of advisers revealed many were looking at technology to make their own services more accessible in 2019.

Mr Stevens says having the option of robo-advice to allow younger people in their 20s to engage with firms like his to set aside “a little and often” should help bring down the average age of clients speaking to human advisers.

He says: “Robo-advice helps bring down the age. There will be pinch points where people want to speak to an adviser.”

Anthony Ward, financial planner at Barclays Wealth, says the banking giant has put together a smart investor platform that allows savers to manage their own investments and this has increased demand for his services.

Mr Ward says while robo-advice has a place, most clients value human interaction.

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. According to Gavin Corr, UK stocks are expensive. True or false?

  2. According to James Roberts, how should financial advisers view Brexit?

  3. What role should cash play in a client's portfolio?

  4. What role should robo-advisers play?

  5. Why should the FCA register include more information, such as qualifications and education?

  6. A more extensive FCA Register would help in the Senior Managers and Certification Regime. True or false?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • To learn more about how to meet the challenges of being a financial adviser
  • To understand the impact of Brexit
  • To see the importance of the FCA Register

I completed this CPD in

To bank your CPD please complete the form below.

Were the stated learning objectives met?

Why weren't they met?

What did you learn from undertaking this CPD exercise?

Why did you undertake this piece of learning?

Banked!

Congratulations, you have successfully completed and banked this piece of CPD

Already Banked!

You have already banked for this article.

To bank your CPD you must or

Register

One or more questions have been incorrectly answered,
 please review your answers and try again.

Please complete all the above text fields to bank your CPD.

More Your Industry CPDSee my completed CPDSee all CPD