Advisers need to learn to effectively outsource burdensome tasks if they want to have time free to expand their businesses, according to Virtual Business Partners.
The financial services outsourcing firm said adviser research by the firm had found advisers were spending large chunks of time on tasks such as plan preparation and administration which was detracting time from those which added value for the client.
However, the senior and more successful advisers did less of these tasks as they had learnt to delegate effectively and were outsourcing tasks to paraplanners and assistants.
Time spent on tasks
Source: Virtual Business Partners
With much time during 2021 taken up with education requirements, 2022 was expected to see advisers at a crossroads as they considered their future steps within the advice industry.
David Carney, Virtual Business Partners chief executive, said: “Many financial planners are now ready to take the next step in growing their practice and expanding their operations, but find the thought of expansion daunting, and are wary of the responsibilities and potential stress that such growth would mean.
“This concern is completely valid but it shouldn’t hold planners back from taking the next step.”
If a firm was looking to outsource, there were several factors to consider including the level of support and quality of work provided, what type of work would be outsourced, how much it would cost, whether the provider was a specialist and what support and training was offered.
Training was particularly important, Carney said, as firms needed to ensure the outsourcing firm was up to date with Australian legislative and regulatory requirements, which included the Financial Adviser Standards and Ethics Authority (FASEA) requirements.
“This means the provider should have continuous professional development training for staff, ensure staff meet standards such as the FASEA requirements or RG146 compliance, and be fully conversant with requirements such as best interest duties, the [FASEA] code of ethics, as well as areas such as record-keeping obligations,” Carney said.
“On top of this, providers should meet the highest standards of privacy and security, particularly cybersecurity.
“While some of these considerations may seem onerous, in reality the right provider will take care of many of the details and requirements themselves. This frees up financial planners from tasks such as recruitment and training, which can be very time-consuming and demanding.”
This makes a lot of sense advisers can’t grow their business if they’re stuck doing every little administrative task. Learning to delegate and outsource frees up time for the work that actually adds value to clients and drives success.