Principals in Practice

The dislocation in advice has led to more businesses being sold in the last five years than ever. What do purveyors on either side of the equation need to be aware of? Hear from a practitioner who sold their business and M&A experts on what every business owner needs to do about being prepared for succession.

How have the October changes affected the advice ecosystem and what are we expecting of the retail advice review in terms of regulatory change? Has the pendulum swung too far and how serious are regulators about pulling it back?

Marketing in financial advice is an area – like IT infrastructure and HR management – that is fundamental to practice management but not a core skill for advisers. For small practices, especially, a lack of marketing savvy can weaken the chance of growth. Underpinning this issue is the broad thematic of advice value, and the need for advisers to help their market understand what it is they do so well.

Advisers have not only what you might call a micro responsibility to look after their clients best interests, but many believe a macro duty to steer or at least facilitate responsible, sustainable investment choices. However, what seems like a black and white issue is filled with challenges and grey areas to wade through.

Managed accounts present a clear value proposition for most advice practices, with the agility of its operations meaning trades can happen across the board and in an instant. So what’s it like for a firm going from wrap platforms to managed account platforms? What are the challenges, dangers and opportunities? Also, what's the product landscape like, how do the big producers like Blackrock put model portfolios together and to what level does consultancy with advisers come into play?

Since the advent of the Professional Year for new entrants to advice, practices have struggled to structure effective programs to foster talent. Despite the inherent challenges, some are managing to identify talent and align the education mandate with the job of bringing someone through the system.

Client pricing is a crucial element in financial advice, but the methodology used by practice managers is often not as robust as it should be. So what are some of the common mistakes made when structuring a pricing policy, and what can advisers do to ensure the value of their service matches their remuneration?

Advisers that can harness the benefits of advice technology are positioning themselves for sustainable growth, but the road to efficiency is paved with potholes. How can advice businesses future proof themselves by adopting the kind of technology that will work for their practice and their clients?

The burdens on advisers is mounting, and more are turning towards dedicated community groups where they can talk openly with peers about the challenges they face. As these groups grow and become embedded in the ecosystem, we explain the value they hold for advisers and the shape they’ll take in years to come.

What does a professionalising industry mean for the shape of advice practices? Is mending the advice gap a pipe dream for an industry veering towards the top end of the consumer market, or can a mass market solution work?