Introduction
The financial landscape is ever-changing, and the recent introduction of ‘Consumer Duty’ regulations has led many advice firms to re-evaluate their client relationships. Unfortunately, this has resulted in some diaspora clients being let go by their advisers, often on the grounds that the relationship is not financially viable for the firm. If you find yourself in this predicament, this article aims to guide you through your next steps and options.
The Reality Check
Being “sacked” by your financial adviser can be a jarring experience, leaving you feeling vulnerable and uncertain about your financial future. It’s essential to remember that this is a business decision for the adviser and not a reflection of your worth or financial potential.
Why Did This Happen?
The ‘Consumer Duty’ regulations require advisers to provide value for money, leading some firms to conclude that maintaining clients with smaller portfolios is not profitable. While this may be a rational business decision, it leaves a gap in the market for those who still need quality financial advice.
What Are Your Options?
- Self-Managed Portfolios: With a plethora of online resources and tools, managing your own financial portfolio is more accessible than ever. However, this approach requires a good understanding of financial markets and investment strategies.
- Robo-Advisers: These automated platforms offer a lower-cost alternative to traditional financial advisers. They are particularly useful for straightforward investment portfolios but may lack the personal touch and customisation.
- Non-Intermediating Financial Planners: These professionals focus on providing financial planning without selling financial products, often making their services more affordable and transparent.
- Community and Online Groups: There are various forums and online communities where you can seek free advice. However, the quality and reliability of this advice can vary.
- Consult Your Network: Personal recommendations from friends or family can often lead you to affordable and reliable financial advisers who are willing to work with smaller portfolios.
Preparing for the New Relationship
- Know Your Worth: Before engaging with a new adviser, have a clear understanding of your financial situation and goals.
- Ask the Right Questions: Make sure to ask about their fee structure, services offered, and how they can provide value for your specific needs.
- Check Credentials: Always verify the credentials and track record of any financial adviser you consider.
Conclusion
Being let go by your financial adviser can be a disheartening experience, but it also offers an opportunity for a fresh start. The financial advice industry is broad, and there are multiple avenues you can explore to find the guidance you need. Remember, the end of one relationship often heralds the beginning of another, potentially more fruitful, one.
Further Reading
Challenges Ahead: Financial Advisers And A New Consumer Duty
Transforming Financial Planning with Fintech: Embracing a New Business Model to Serve All Consumers
Academy of Life Planning 