Q. What is the biggest change you have seen in the industry since you joined?
I would point to two – one expected and one completely unexpected.
I had planned for the RDR in 2012 and this did – as I expected – cause a fundamental shift in the advice profession as it made explicit the cost of advice and, in turn, necessitated advisers to realise and articulate the value of advice.
There is no doubt that high-quality financial advice is able to positively change lives – realising goals, saving tax, giving the confidence to retire to name a few. RDR also accelerated the trend towards increased professionalism through the introduction of minimum qualifications, which has had a beneficial effect in further raising standards.
Like all, I didn’t expect pension freedoms, which revolutionised the basis of retirement planning advice overnight. I recall in a previous role needing to suspend in-flight annuity recommendations as we adjusted to the implications of the initial announcement. I don’t believe the full impact of this change has played out yet as significant numbers of retirees are choosing an unsecured income route to meet their needs.
Q. What is the investment topic most often brought up by your clients?
A key question right now is whether to invest or hold back and wait until the market is less volatile, to which our answer is to continue to hold a long-term perspective. It has been repeatedly proven that it is ‘time in the market’, not ‘timing the market’ which counts. However, it requires confidence and composure to apply this rationale when markets are as volatile as present, and this is where qualified financial advisers play a part.
Q. Which piece of regulation – positive or negative – makes the biggest impact on your day-to-day role?
We are currently working through the implications of the FCA’s consumer duty principle and reviewing our activities to ensure they meet the requirements. While the intention of the duty is consistent with our own client-focused values and reinforces much that the regulator has driven through TCF principles previously, consumer duty is more far reaching and forces a more critical examination of all aspects of the client experience.
It’s about taking into account harms that may materialise in future if appropriate action or controls are not put in place now.
Q. If it was in your power, what one change would you make to the wealth management industry?
I don’t think I would be alone in saying we need to simplify how advice is delivered to enable us to meet client demand more effectively, but there is a reality to the considerations and documentation required to make an advice recommendation that cannot be reduced easily or safely.
There is much more work that could be done across the profession to improve access to information and ease of movement of products and funds from one provider to another.
It’s not acceptable for client outcomes to be waiting long periods for information on a client’s holdings or for a firm to release funds to move to a new arrangement. I am hopeful the consumer duty standards will address this, proving a more effective sanction for failing to provide an acceptable level of customer service.
Q. What advice would you give to someone just starting in the industry?
Expect change. You’ll work in an environment that is constantly changing, whether by new regulation or market change through technological development or changing patterns in distribution. Every change brings opportunity, so keep an open and positive mindset.
If you’re just starting out as an adviser, take pride in the ability you will have to change lives for the better and helping people to achieve goals they may never have considered achievable before.
BIOGRAPHY
Andrew Barker joined Succession in August 2021 as director of proposition. He has more than 20 years’ experience in financial services, initially commencing as an adviser and subsequently building advice propositions as a founder of Prudential Financial Planning. More recently he headed the 1825 advice proposition and developed the digital retirement advice offering at Standard Life.
This article first appeared in the November edition of Portfolio Adviser Magazine
