Speaking at the Institute of Financial Advisers (IFA) conference in Wellington, Berry used her experience of working in the Australian market - where commission payments are banned on certain products - to outline how to best utilise a fee for service model.
She said in Australia 85% of advisers were associated with a provider, and Australian Securities and Investments Commission (ASIC) research found 61% of advisers revenue came via commission, helping "create a perception of product bias."
Berry also outlined a number of ways advisers can succeed in a fee for service environment.
It is essential advisers stop referring to the advice industry, as Berry stressed it is now a profession and needs to be labelled as such.
Another point she emphasised was knowing the worth of your value proposition and making it clear to clients what you can do for them.
"There's a price to be paid for the services you offer," she said.
She challenged the advisers in the audience who may offer a first meeting for free to make it clear to the client that the meeting is not ‘free', but at the advisers expense.
She also advocated talking to existing clients to ascertain exactly what it is they value about the service's and relationship, saying "it probably won't be that you got them 7% year on year."
While regulatory moves to ban commission in New Zealand do not appear to be on the agenda, Berry said changes in Australia can "float down."
"If you have a strong value proposition, if your client can tell you what they're paying for, you'll have a strong business," she said.
| « News Round Up: July 18 | KiwiSaver mismatch a 'huge challenge' for advisers » |
Special Offers
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved