On a positive note, the survey indicates that younger people are happier to pay for advice than their older counterparts. Only 17 per cent of millennials rule out paying for financial advice and nearly 20 percent are happy to pay a rate of £150 per hour or above.
Advisers must now ensure their proposition, advice structure and charging models are fit for the future.
5) Mifid II
Mifid was introduced in 2007 to harmonise securities trading and financial services legislation across the European Economic Area. It was agreed that Mifid would be reviewed after three years, the result is a new tranche of legislation, dubbed Mifid II, currently scheduled to be implemented in January 2018.
The key issues for advisers surround:
• Tighter rules on complex products.
• Target markets.
• Client conversations.
• Financial reporting and complaints.
• Inducements and remuneration.
• Investment governance and research.
6) The end game
You've spent your career building your advisory practice from the ground up. You have a database full of loyal, regular clients and the business is still growing. You're starting to think about retiring from the business and either selling it or passing it on to a family member or colleague.
There's only one problem: you are inextricably entwined in the business. Clients want to see you, not someone new. The challenge for many advisers will be how do they monetise and then exit the business they have built up.
This must and should be done well in advance of any sale. Tactics such as a marketing database, effective segmentation and succession planning are vital to ensure you receive the value you want from the business you have built.
These six issues are vital for every advisory business and you need a plan to ensure you are ready for the future of advice.
John Joe McGinley is founder of Glassagh Consulting
