Advisers with investments as their value should be worried

Financial advice firms that do not focus on goals or values-based advice will struggle over the next three to five years, according to an adviser.

Speaking on a Lumiant webinar, Enlightened Financial Solutions chief executive, James Wortley said if an adviser’s value proposition was based on strategy and investment they should be worried about their business.

“If you're not outperforming these indices or benchmarks, you're in trouble so that's where value advice comes in. If you're not doing goals-based advice and values advice your business is going to struggle over the next three to five years,” he said.

Related News:

“If strategy is your number one client value proposition, then geez you are going to have to show that really well with your clients to be able to do that. But when you're talking about value and above the line – what's really important to clients, understanding what their values are, what's really important to them in life and how we can help them – that's the game changer.”

Wortley noted that the number one thing the advice industry had not coped well with was client communication.

A central communication tool that clients could go back and check was needed as emails, phone calls, and text messages could get lost.

“From a business point of view, the number one thing we look at is ‘what's important to the business?’ But more importantly, what is the client getting from a value perspective?” he said.

“I think that's what a lot of advisers miss is, they go 'look let's be efficient, this is what we want to be able to do'. But always look back on what the client is, what's their experience that they are getting? And that that is that is quite a big call out I think for industry to move to profession.”

Recommended for you




Another "infomercial".

Wow thanks for the most amazing of insights.
Imagine any business, even an adviser business that thinks about their clients.
Give this article and commentator a gold star for moronic awareness.

Do your own thing, great, but dont sit on your holier than thou throne and preach to us. We are successful thats why we are still in business. Please dont treat disrespect your peers as a way to get business. We all operate differently we service different people and markets. There is no right way. Stop trying to perfect advice. Its not and never will be perfect.

I don't know why people sprout their own view in MM - just to get their name in the paper and promote themselves? Haven't they learnt yet - unless you are criticising ASIC / the government / other licensees you will get nothing but a barrage of negative comments.

What's with all the negative comments. I don't think that anything James has said in this article is insulting, or "talking down" to other advisers.

Whilst I don't agree 100% with everything he has said, on the investment side he is dead right.

If you disagree, it would be nice to hear how you are doing things differently.


Add new comment