Advice vs. Sales

Friday, 1st October 2010 17:09 - by Resident IFA

I couldn’t help but have a wry smile at the ‘eminent Wealth Manager’ St.James’s Place (SJP) being dragged through a court tribunal, the gist of which concerned the title of this Blog. If the representative of the company is slick enough, the difference between the two focuses' can be relatively imperceptible. I have met a few Advisers who come across as the Client’s best mate, the basis worked on clearly being ‘People buy People’ to cover their technical/ethical deficiencies. I, on the other hand, am a boring, stern, and unlikeable individual who provides fantastic advice! There are a number of elements that can lead people to ‘sell’. I am effectively self-employed – as SJP’s ‘Partners’ are – which some people would feel is a precarious position. I set targets for myself, but take a softly, softly approach to achieving them. Up until providing a Client with Pensions & Divorce guidance a couple of weeks ago, I had not ‘written business’ for 2 months - unheard of in most companies. My company (2 other Advisers involved) works on the basis that good advice and transparency will breed a more trusting relationship with the Client anyhow. The Client will undoubtedly determine the appropriateness of any action I suggest for them as long as they are suitably well-informed by me. Perhaps I am lucky to row my own boat and not have the weight of a marketing operation (and targets) such as SJP’s on my shoulders? One of SJP’s Regional Managers let the cat of the Sales bag when he said “'As long as our partners are achieving above our minimum profit level, it's acceptable to us. We are a sales organisation.” at the tribunal. The other issue I would raise is that SJP and their like are not independent. No-one ‘pulls my strings’ or tells me what I can or can’t do (bar the Financial Services Authority!) in advising my Clients. I can advise from the entire marketplace at my discretion, not only from a ‘range’ of solutions/providers. Perhaps it is best to seek out a suitable Independent Financial Adviser (IFA) rather than a representative of a Bank, 'Wealth Manager', or other large organisation. I know, from past experience in Bancassurance in the late 1990’s that the Client is the means to an end, not the be-all-and-end-all as they should be. You have been warned! Until next time...