The financial adviser profession is growing and highly respected. Advisers provide guidance and advice to individuals and businesses regarding their financial affairs. The scope of advice given can vary massively from client to client. Some clients may need simple investment advice whereas others may require complex tax and estate planning. However, regardless of the type of advice given there are the same key skills and regulatory requirements required throughout.
As an adviser, a lot of your day will be spent speaking to clients and effective communication is key here. Being able to listen to your clients needs and objectives is one thing, but often it will take a meaningful conversation or two to build a sense of trust before clients will lay all of their hopes and dreams on the table.
Of course, technical ability is also fundamental. All advisers should be at least level 4 qualified and will have an understanding of a wide range of financial products. Advisers must also be fully compliant - from the initial disclosure documents that must be produced to consumer duty – compliance impacts every aspect of financial advice. Due to the ever-changing regulation advisers must remain up to date with legislation.
As the role of a financial adviser is very varied with potentially lots of driving and evening meetings, it's not a one-size-fits-all situation. However, a typical case might look something like this...
Mr & Mrs Smith meet with a financial adviser to discuss their upcoming retirement. They have both worked hard all of their lives accumulating multiple pensions along the way and have been saving meticulously over the past few years. During their initial meeting(s) they discuss what their ideal retirement looks like and share goals for the coming years.
It would usually take a couple of weeks, at least, for advisers to obtain all of the required information from their existing pension providers and to fully assess their suitability.
Fast forward a couple of weeks and the adviser has now reviewed their existing plans and produced a suitability letter in line with the client's objectives and current circumstances. During their meetings, Mr & Mrs Smith expressed particular concern about the level of income they may potentially require during retirement stating flexibility of income as one of their main objectives along with overall tax efficiency.
Client objectives are the key driver to any advice given and particular attention should be given to this area.
Mr & Mrs Smith meet once again to discuss the adviser's proposed recommendations. During this presentation meeting, the adviser would typically discuss the contents of the suitability letter explaining all aspects of the advice along the way and ultimately, linking this back to how this would meet their objectives.
This doesn't need to take place during a face-to-face meeting, however, consumer understanding is vital and being present with clients is the best opportunity you will have to achieve this.
