From the time the RDR came into effect, the industry has been asking whether it has affected client behaviour – or whether the general public is even aware what it means. But has there been a change in the way clients think about advice?
Reinforcing the message
Dean Mullaly, managing director of London-based Mark Dean Wealth Management, says he has seen no major change in his clients’ approach to advice since the RDR. “I’d like to think this is because they all see the value in the advice we provide, but alas I think not.
“We need to constantly think of ways to reinforce the reasons why they should retain us as their advisers – whether this is updating our website to provide a new client reporting portal that they will hopefully find useful and something they cannot live without, or sending out quarterly newsletters, information on a Budget update or Autumn Statement, or an unbiased view of [topics such as] the EU referendum,” he adds.
Brand awareness
Mr Mullaly says these are all things that can add value to the relationship between the adviser and the client, and that can help to subconsciously strengthen a brand in the client’s mind. “They are all things that the client needs to consider they could not live without if they got rid of us.”
But what do new clients think? Mr Mullaly believes that many initially see what he does as a cost, rather than something that provides value. He thinks this is because he has not had enough time to prove the value at the early stages of the relationship. “We have all heard the age-old arguments of cost versus value, and they’ve never changed. Clients will always look at the cost initially, and it is down to you to put that cost into context and prove the value.”
“Ultimately, it’s not about cost – it’s about value,” he adds.
As the need for financial advice grows in importance, advisers must make clear to clients that they are paying for a quantifiable service. Whether this is achieved by offering a certain number of hours free of charge, or through additional services such as sending a monthly newsletter, what matters is that advisers provide something that the general public cannot get anywhere else.
