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Aifa: the options for your business post-2012
by Robert Sinclair on Aug 11, 2010 at 08:36
Pressure for advisory businesses to change is coming on many fronts and firms must start planning their strategies to survive in the new environment. Aifa's Robert Sinclair (pictured) identifies some of the options.
The increasing impact of change on the investment and advice industry makes this an important time to consider how firms need to adapt to meet consumers’ evolving needs.
The structure in which advisers operate is being transformed in the run up to implementation of the retail distribution review (RDR) at the end of 2012, combined with a rapidly evolving series of technology-based alternatives.
Those who lead firms have a responsibility to consider how their businesses will make the transition to the post-2012 environment. Some firms will find this is not an onerous task; others may find it more of a stretch.
The Advice Horizons report
To help member firms, the Association of Independent Financial Advisers (Aifa), with the support of Legal & General, has worked with a steering group to look at the issues and the options for firms to adapt their business models to the new environment. The product of this is Advice Horizons, a report that we hope will help firms faced with these important strategic decisions. The report will confirm the strategic decisions of some firms and provide food for thought for others.
The process that turns consumers into customers or clients is a highly individual one. Understanding their journey is central to developing a sustainable and successful business model.
The report sets out to promote thought and debate on the key issues. It does not deliver the solution, but it does provide a range of insights and options from which firms can evolve their own blueprint and solutions.
Pressure for change
JM Keynes famously said: ‘When the facts change, I change my mind. What do you do, sir?’
The facts are changing at an unprecedented rate for the financial advice profession. The drivers for change are many, so firms need to change their minds about the type of business they will run.
Social change
A number of social factors are increasing the need for firms to assess their position and consider changing tack.
Markets
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6 comments so far. Why not have your say?
philip brown
Aug 11, 2010 at 11:57
I sincerely hope that the Advice Horizons report is more useful than this load of regurgitated waffle.
report thisEvan Owen
Aug 11, 2010 at 14:15
I agree with Philip Brown, is there nothing more useful AIFA can do?
report thisBrian Johnson
Aug 12, 2010 at 15:58
I am tempted to report Evan Owen for using the words "useful" and "AIFA" in the same sentence.
report thisEvan Owen
Aug 16, 2010 at 11:07
I apologise profusely to Brian Johnson, I don't wish to be reported for causing conflict within a sentence.
This morning, like most mornings, I spoke with another IFA who is on his last legs. This is another one who didn't take commission, he charged a fee and he can't understand why the lying thieving claimant is complaining. I had to explain that the system is weighed against him, he has to demonstrate with clarity that his advice was suitable when given and then make it 'immediately apparent to the FOS (because it will go that far) that this is not a valid complaint. All very stressful.
He said he had no idea that the system is so unfair and had to admit that he wondered what I had been ranting and raving about for over seven long years. I had to admit to him that I was surprised he thought charging fees was a sure way to avoid complaints, professionalism and all that.
He went away with some free advice and the story of the IFAs who failed to ensure that their representative body wasn't taken over by the networks and large firms.
report thisGillian Cardy
Aug 16, 2010 at 12:06
"When the facts change I change my mind."
Well, if that means that independence will no longer be the distinctive feature of members of AIFA, then this may well be one change too far. Whatever independent advisers think of the FSA, RDR, or the general state of the financial nation, the ONE thing they have managed to remain passionate about (for the most part) is that INDEPENDENT advice is superior.
Every business needs a USP : AIFA's was that it supported INDEPENDENT advice, not just any old advice. Tied, multi-tied or restricted are NOT just as good. If it no longer does that then it has no USP, no passion, nothing to stand for and nothing for the rest of us to stand up and support.
Changes to dilute passion. commitment, values and principle are changes that should not be made (perhaps that should be in the new Ethics study courses).
report thisEvan Owen
Aug 24, 2010 at 21:13
Well put Gillian
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