The changing face of advisers

Moore, who provides consulting services to advisers buying and selling client books through his company Mike Moore Marketing, told Good Returns that modern advisers have better qualifications than their predecessors but struggle to relate to clients.

Because of this, he said new advisers are having to buy their way into business rather than building their own client books by getting out and meeting people. Regulations also play a part, he said.

“If you’d asked advisers twenty years ago how they’d grown their client base you wouldn’t have had any who had grown it through acquisition. Now you’ve got regulations almost forcing them into that scenario.

“I take a general view that financial advisers 20 years ago were more personality based. The younger advisers have much better qualifications and give impressive presentations but they have very low people skills – they’re quite geeky.”

Moore said there are “many more buyers than sellers” for advisory businesses at the moment and many buyers have to be “held by the hand” during the process.
“You don’t want them telling the clients, ‘just letting you know I’ve bought you and I’m coming to see you on Tuesday.’”

The requirements for becoming an adviser have changed markedly in recent years, Moore said.

“It’s getting harder to get in – the bar used to be your ability and determination to get in front of customers. Now the bar is first you must be knowledgeable and get a qualification, and then you find out if you’ve got any people skills.

“There are going to be so few advisers with people skills that people are going to have to pay a lot of money to see them.”

Moore said he once asked a friend what the key thing was to being a good financial adviser; “asking for the money” was the response.

“There’s a huge difference between the personality-based people and the process people. The process people think they’re going to give them the money anyway because of logic. Well, if people were logical they’d buy a Skoda not a Ferrari.”

Comments from our readers

On 16 December 2011 at 8:32 am Sarks said:

Was it Dave McMillan who said that the paradox is that the requirements of the new regime do not have a standard set that measures an adviser's capacity for relationship building? In saying that, I've met advisers who've been in the industry since dinosaurs roamed the earth, and who have the personality of a block of wood.

On 16 December 2011 at 9:56 am TJ said:

at least it should get snake oil salesmen off the market.
"His advice was rubbish and I lost the farm, but Mum really liked him"!!

On 16 December 2011 at 10:01 am denis said:

"...first you must be knowledgeable and get a qualification, and then you find out if you’ve got any people skills".

In Meatloaf's words, I'm not sad about that because "two out of three ain't bad". As a customer, I would expect a knowledgeable and qualified adviser first and foremost and if they can spin a good yarn, well, that's a bonus - but it's not crucial.

My GP loves his job, is knowledgeable and caring. He is at times a little opinionated but I would, literally, trust him with my life. I wouldn't necessarily want to spend a day at the cricket with him, though.

My previous GP was an excellent laugh and a talented story teller. However, he told me in conversation that he was biding his time until retirement and was irritated by the processes he has to follow these days. Lovely chap but I had to conclude that I don't seek professional help for laughs, I really do need to know that they are good at what they do.

That Mr Hubbard was a lovely man with his clients, apparently.

On 16 December 2011 at 10:18 am Dirty Harry said:

an interesting dynamic. On the one hand we have people thinking that owning the renewal flow and a file means they "own the client" and have some sort of visitation rights allowing them to ring up and invite themselves over. And on the other hand we have an article on another website advisers read talking about Miles Flower wanting to make sure the buyer of his business had suitable qualifications and processes.

Some of the most stupid people I have ever met have been quick to tell me about their degrees and academic prowess.

If you are a highly qualified details freak with the personality of a plank and a penchant for expensive grey saloons and endless CPD there is a suitable profession for you out there somewhere. This business will always be about asking for the sale, the cheque, and the referral IE selling. And they don't teach that at university.

On 16 December 2011 at 2:57 pm John Honest said:

"And the sale goes to....Johnny-on-the-Spot!"
Nerds take heart. Socially inept people may find the business comes less naturally to them, but it will come, provided they know how to place themselves in front of prospects.

On 16 December 2011 at 2:58 pm 6ftndr said:

You can say what you want. Buyers come in all shapes and sizes, that is why advisers need to as well.

I'm of the old school, just like talking to people, telling them stories, others like describing premiums and definitions - some clients the first way, others like the second and still others don't like it anyways....lol

The changing face of advisers

New advisers entering the finance industry are smart but woefully lacking in personality, financial services veteran Mike Moore says.

Friday, December 16th 2011, 7:22AM 10 Comments

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