In difficult times – communicate the value of what you do

Financial advisers play a vital role in helping consumers reach their financial goals, according to 2012 AFA Female Excellence in Award winner, Christine Hornery, director of FMS Group, and could be counteracting current anti-adviser sentiment by having conversations with their clients that demonstrate the value of what they do.

“During difficult periods, such as market downturns and times like now when there is a lot going on in terms of regulatory reform, there is, however unfairly, a fair bit of criticism of advisers,” Ms Hornery says. “But these difficult periods present a great opportunity to reassure clients and in so doing, demonstrate the value of what we do.”

Ms Hornery said great advice is about great strategies and is actually measured by the degree to which advisers help clients meet their financial goals. “Great advice is about saying to clients, this is what we are going to do, this is how we are going to do it and this is how we are going to make changes that will help you achieve financial freedom – whatever that means to you.”

Ms Hornery says being a great adviser involves:
– Listening to clients
– Not presuming that every client’s needs are the same
– Walking in their shoes – if, as an adviser, you would not follow your own advice then neither should your client
– Educating yourself and not being afraid to tell your client that you don’t know everything
– Educating clients
– Communicating regularly
– Not being afraid to have hard conversations
– Not avoiding clients when bad news hits

“Over the years, we have seen two very important trends. The first is that the rules around investment and particularly investment in superannuation consistently change and are therefore likely to change many times over in the future,” she said. “The other is the ageing of our population – as a nation, we’re not getting any younger. These two trends mean that Australians really need financial advice. The challenge is to rise above the noise and make sure consumers understand the value of what we do. The way to start is to first ensure that our clients understand that value.”