ADVISER TECHNICAL MATTERS TALK
THE VALUE OF ONGOING ADVICE
OR
Actually , what about your processes , charges and CIP , and making them more efficient in incremental steps like that fibonacci bloke ? And by the way the regulator already talks around price and value in the Consumer Duty .
Karl Dines Head of Business Consultancy SimplyBiz
You might have heard of Leonardo Fibonacci – he invented a pattern of counting that influences countless areas in our day-to-day lives , finance , hurricanes and even cabbages . The Fibonacci Sequence is made up of numbers that sum the previous two numbers before them : 1 1 + 1 = 2 1 + 2 = 3 2 + 3 = 5 3 + 5 = 8 5 + 8 = 13 and so on .
Looking at this graphically you see a spiral of constantly increasing numbers . Apply this to your business by introducing an ever-increasing set of efficiencies that should give you more time and profit . So I was talking to the marketing guys about this and drafting an article on :
The Value of Ongoing Advice I ( jokingly ) suggested the following short and snappy title : Actually , what about your processes , charges and CIP , and making them more efficient in incremental steps like that Fibonacci bloke ? And by the way , the regulator already talks around price and value in the Consumer Duty
Marketing won that battle , or did they … So let ’ s take apart processes , charges and CIPs , and look at each of these areas because they all do impact on the value of advice , and it ’ s just around the corner as one of the four outcomes under the Consumer Duty . A recent article suggested it ’ s the biggest change to our profession since RDR – I ’ m not sure if that is the case but , nevertheless , it ’ s big .
Processes We collaborate with firms and look at advice and investment service processes . The starting point is to analyse the advice and investment process , who is involved and how long it takes . This will provide MI on what your charges should look like ( Consumer Duty territory right there ). From the example shown here , firms can really see where time is spent and the associated costs . A great insight and a jump-off point for those “ So , what are we going to do about it ?” conversations . Commonly , we find that tasks from a more expensive adviser can be shunted down to paraplanners , and from paraplanners to administration , our analysis allows us to play with timings and responsibilities , and will automatically recalculate minimums and thresholds . Pretty useful and insightful . Present that graphically and you have the start of an MI package you can run at any time ( Consumer Duty , again ). This is just a small part of a much bigger piece of analysis we do with firms .
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