In its latest outsourcing survey, FE Research found that some 84% of respondents said they wanted to handle client reporting and communications themselves, while more than a third of them are keen to outsource asset allocation.
Compliance pressures and RDR were understandably cited as reasons to consider outsourcing, though with so many regulatory changes afoot it begs the questions how much time advisers have to converse with the clients they already serve, let alone seek out new ones.
A flick through the personal finance press releases we receive highlights the plight of those needing financial help. ‘Almost a third of Britons admit to not knowing how to fund later life costs’, says one. ’15% of population claim financial worries are affecting their health’ reads another.
Online initiatives from the FCA and the IMA’s new investinginfunds.org website all help with basic consumer information, though that’s very different from a face-to-face meeting.
Power to the people
Or, are we underestimating people? Frank Dolan, chartered wealth manager and investment director at Novatis Asset Management, believes the post-RDR environment ultimately gives the public more power to demand what they want from complacent wealth managers.
In sticking to a strategy that puts model portfolios at the core of their proposition, he suggests wealth managers and IFAs are putting off potential clients for financial advice.
“Branding is about more than a fancy logo; you have to have a story to tell and it doesn’t surprise me that wealth managers are coming under pressure to be more bespoke,” he says.
With the emergence of the likes of Charles Stanley Direct and FundsNetwork’s tie up with FE Trustnet, it’s clear that many see execution only as a profitable road ahead. Engagement is vital in promoting the benefits of advice, but if a client is going to pay the extra then their needs must come first rather than pushing the off-the-shelf option.
