Championing clients’ needs
Industry consultant Paul Resnik has lambasted wrap service manufacturers for failing to listen to ultimate needs of the client.
Speaking at a wrap account conference in Sydney last week, Resnik questioned the motives of wrap manufacturers in developing "technology driven" product that ignored the needs of the majority of consumers.
Resnik said there has been limited consumer demand for wraps as clients do not want features that differentiate wraps from other products in the market
The proliferation of wraps in the market is the result of a "supplier push", Resnik said.
He contended that wrap services were too complex for the average investor to digest, and would alarm clients not wanting any "financial surprises".
And he cited research conducted by one of his own companies, ProQuest, which showed that 70 percent of clients have low to average risk tolerance, to back up his claim.
Resnik argued clients used financial planners to reduce risk and simplify the management of their assets in order to achieve a better lifestyle.
"For a vast majority of people, money is a means to an end and the industry is focussing on the end in itself", he said.
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