If you use the services of an Independent Financial Adviser (IFA), one of the things that you might value is the long-term relationship that you have.
We think that this is important because the adviser and client both get to see the outcome of the advice that has been provided.
It is not surprising therefore that many people stick with their adviser for years and years.
But what happens when your adviser retires, or perhaps decides to merge their business or sell their business to another firm?
What happens then, particularly if the firm that acquires your advisers business is a substantial corporate entity?
Our advice is avoid being ‘shoehorned’. What on earth do we mean by that?
Well we think advice is a personal thing and should be delivered to each client in a way that is suitable for them. It is not the case that one product or investment platform is going to be suitable for everyone.
What we see quite often is that when IFA firms are acquired by an entity that is trying to build a substantial market presence, often on a nationwide basis, that their clients are shoehorned into an offering that is the same for everyone.
Usually the new firm has decided that it is going to use one investment platform and even create its own investment fund and that is what is offered to all.
There goal is to get assets under management and that is frankly all their proposition consists of.
We think this goes against the interests of the consumer and ignores the wants and needs of the consumer.
In fact I got into a very public spat on this subject recently because I felt that identified client needs and wants were being subsumed by the corporate desire to accumulate assets under management and ignore the very important requirements of the consumer.
I don’t like the thought of any client being ‘shoehorned’ into one offering; in my view they should get personal bespoke advice.
Photo credit: Flickr/Debbie G
