There’s no better time than now for financial planning businesses to engage with accountants, and assistance in forging successful referral relationships may come from an unlikely source.
Scott Charlton, business coach and author, says that “for good reason, accountants are seen as a great source of referrals”, but many financial planners have had little success in forming strong relationships.
“Accountants are driven by the short term – today’s tax lodgement deadline will take priority over encouraging that same client to plan for their retirement,” Charlton says.
“Traditionally, this has made it difficult to engage with accountants, who seemingly always have a deadline.”
Charton says that as unlikely as it sounds, financial planners may find they are helped by the Future of Financial Advice (FoFA) changes.
“Much of the attention has been on how FoFA will affect planners, but the impact of FoFA on accounting firms should not be underestimated,” Charlton says.
“Accountants are slowly coming to realise that they are being included in the licensing regime which governs the conduct of planners.”
Fresh thinking
Charlton says the new rules will require fresh thinking by many accountants.
“In my view, accountants who assist clients with self managed superannuation funds will find licensing under FoFA virtually inevitable,” he says.
“Planners who position themselves as being able to assist accountants adapt to the new rules will find themselves having a totally different conversation to the usual ‘Got any clients for me?’ discussion.”
Charlton says the key to getting accountants’ interest is to help them appreciate that not only is there a statutory deadline of July 1, 2016, but that the time to act will be upon them before they realise it.
“Before the deadline, many accountants will need to undertake additional study, become licensed and implement new systems,” Charlton says.
“This will all take time, particularly when fitted in around their day to day workload”.
Ideally placed
Planners who can help accountants understand their options and complement what the accountants wish to provide are ideally placed to forge long term relationships, Charlton says.
“The vast majority of accountants want to be involved with the initial strategy for their clients but have little interest in product selection and portfolio reviews,” he says.
“This should not be seen as limiting planners to the product aspects, however. Where joint meetings are conducted with the client, there’s enough work generated to keep both the accountant and planner happy.”
Charlton’s tips
• Don’t approach accountants with a “sky is falling in” message. Accountants have heard this all before and it just antagonises them.
• Position yourself as a helpful colleague, one who can play a role in helping the accountant to chart a course through the FoFA requirements.
• Explain how you derive most of your income from the ongoing client relationship.
