It’s easier to criticise than create
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I sit next to a guy at the Emirates who knows it all. His tactical genius and colourful language in judging the efforts of Islington’s finest, puts Arsene to shame. Well in his mind it does anyway.
He reminds me of a number of financial services marketers. He’s never kicked a ball in anger. He’s never built a premiership winning team or had to tell a 16 year-old that their dream is over. He’s never had to keep the fans and his board of directors happy, but he continues to have a view on all of the above.
So, how many of my product provider brethren have ever sat in front of client when their investments are down 10% or had to tell a widow that she doesn’t have enough income to keep her family home? Answer: not many.
So why do they continue to have a view on adviser qualification standards or IFA competence? Where are they when the latest product “scandal” breaks? Usually in their ivory towers blaming everyone else – usually blaming the IFA for mis-selling “their” products.
Having had the need to use the services of an independent adviser for both my own and my late father’s financial affairs I have seen first-hand what a fantastic job the intermediary sector does for its clients. Much more than simply choosing and flogging product as some would have you believe, their levels of professionalism, diligence and empathy are quite exceptional. A view further endorsed when judging the Money Marketing awards recently and being present at the Aurora Group meeting only last Friday.
It struck me then that if the fund management community had spent a fraction of its marketing budget on promoting the benefits of independent advice instead of pushing product we might have actually grown the market together. Just 5% of the estimated £340m of advertising spend over the past seven years would have put the IFA sector in a stronger position in the countdown to the retail distribution revew.
The UK needs high-quality independent advice, so let’s stop bashing it and actually get behind it.
Rob Page is partner at Ardevora Asset Management.
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Readers' comments (4)
Lee Robertson | 13 Feb 2012 11:46 am
I have to concur with much of what Rob is saying here. Over the years I have watched many really ethical, highly skilled advisers deliver technically competent, well researched and presented financial solutions to their clients, often in very difficult or trying circumstances. This has often been set against a backdrop of withdrawals and failures of poorly designed or thought out products delivered by larger, better funded institutions. Whilst the advice sector is far from blameless we do appear at times to shoulder a disproportionate share of the blame as we are the main interface with the investing public.
As the group co-ordinator of the Aurora Group it is nice that our collective efforts are recognised as worthy of praise but I would hazard that there are many hundreds, if not thousands, of highly competent advisory firms worthy of similar praise and they would also be grateful of ongoing support from the providers from which they select products for inclusion within financial plans.
If we are to move on to RDR and beyond mutual support, sharing of best practice and encouragement of our collective successes is surely desireable.
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brian dennehy | 13 Feb 2012 1:05 pm
Thanks for that support for the IFA sector Rob. I received a BlackRock paper in recent weeks (Restoring Investor Confidence) which has a lot to say about products (for the IFAs to sell), but illustrates little real insight into IFA best practice.
A lot of money is spent (mostly by fund managers) in facile and patronising backslapping. Yes I mean awards ceremonies which seem to promote little more than heavy drinking. Yet there is so much more which could be done, which would add value from day to day.
Sadly the industry (both fund management and IFA) lacks leadership and imagination (beyond the self serving), and is regulated by those for whom the IFA sector is largely a mystery. So it is encouraging that Rob stands up for the need to change - if more did similar we really could restore investor confidence. Thank you
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h kaso | 13 Feb 2012 5:31 pm
Poignant blog Rob. Some excellent points.
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Martin Ranson | 14 Feb 2012 10:21 am
Having worked with our ‘in house’ IFA for the last 7 years I can attest to the professional and well received services that can be provided by a quality IFA. I agree that if the industry had worked in a more coordinated fashion there would be an improved perception as to what well informed advisers can provide to both individual and corporate clients.
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