Ken's column: Most clients would not buy a low-cost parachute
In today’s world, with its constant focus on regulation and compliance, it is all too easy to forget what this great business is really about: ensuring our clients enjoy good outcomes from the savings, investments and protection plans we arrange for them.
Good outcomes do not necessarily mean finding the cheapest products or charging the lowest fee. Most clients would never buy the cheapest fire extinguisher – or parachute. So why the obsession with the cost of financial advice? This is particularly relevant in relation to savings and investments, where it is impossible to forecast what the outcome of a purchase today will be far into the future. What clients value is impartial advice from someone they trust, who will use their expertise to best advise them.
If we do that right, complying with regulations simply becomes a natural part of the advice process. It is only if you try to shoehorn clients into preconceived or standardised solutions, rather than carefully considering their personal circumstances, that you create potential compliance or regulatory problems.
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