Focus on what's important in 2016

Advice industry needs to start the new year on the right foot, writes Institute of Financial Advisers chief executive Fred Dodds.

Wednesday, December 30th 2015, 6:00AM

Recent surveys from the Commission for Financial Capability and the Financial Markets Authority about the small number of New Zealanders using advisers and a lack of public faith int he industry are not a great read for adviser world and it is getting a bit tiresome

What we don’t have enough of are surveys from advisers’ businesses on their clients – which, I am sure, would tell a quite different story.

The recent global FPSB survey confirms that: Having a plan and a professional adviser puts consumers in control of their financial lives and consumers with a comprehensive, written, financial plan are three times more likely to feel confident they will achieve their life goals

A greater sense of pride in our profession is needed - to that end, the Institute of Financial Adviusers is promoting a value proposition to advisers that confirms their vision statement of “inspiring trust and confidence in financial advice” and covers these points:

An adviser’s job is to find, serve, satisfy and ideally build a business by keeping clients.

We should offer:

• ORGANISATION – "I will bring order to your life" – there is so much involved in financial advice when one considers the mortgage, the necessary life cover programme and what is in it, income protection, trauma, TPD, health, fire and general insurance, children’s education programme, retirement planning, KiwiSaver, trusts, wills etc – people initially need order.

• ACCOUNTABILITY - "I will work for you to prioritise your goals" - a natural follow-on to the first point.

• PROACTIVE – “I will work with you to transition through various life stages so you can be ready for them” – This is also "I will not sell you and forget you." The criticism from many consumers is that advisers say “I’ll keep in touch – yeah right!!”

• EDUCATION – "I will be educated and knowledgeable" – say no more!

• PARTNERSHIP – often described as a “an association for the benefit of two people – you win because you get me- I win because I get you” the important aspect of this “partnership” is that having proven your value proposition, real referrals will flow from a client base that has adviser value all over it – your clients will become your marketing team.

Let’s not get bogged down with Issues, Options and a 2016 full of Implications – let’s get a sense of pride in our profession and perhaps have a New Year’s resolution of a bit of self-promotion to change some of these statistics.

Tags: Fred Dodds IFA