Content: One Strategy to Truly Connect with Clients AND Prospects
A thoughtful content marketing strategy will lead to deeper client engagement through demonstrated leadership and can be used to truly connect with clients.
Best interest, as a concept, is pretty straightforward: “conduct yourself in a fashion that is in the best interest of your client.”
So it makes sense that most of the conversation around the best interest standard deals only with the advisor’s behavior while he or she is still in the service of the client (hence the ‘conduct’ part). But equally important is the standard of care a client receives when the advisor is no longer able to serve the client, for one of any all-too-common reasons.
As we all know, shit happens. Even to advisors. People get sick. They die. Accidents happen. One day you could decide you need to make a life change and pursue another passion.
“Who will provide continuity of care when an advisor exits his practice? It’s a question that seems to me far more critical to a client’s “best interests” than whether or not Fund A is a few basis points less expensive than Fund B.”
– Ray Sclafani (reg wall)
What happens to your client in these situations? As their financial advisor, it is part of your job to protect them from this kind of disruption for one simple reason – it introduces risk that is not in their best interest. Risk that you can and must mitigate for them, by putting in place a comprehensive succession plan, with clear rules as to how and when it kicks in.
First, you need to understand what the risks actually are. Consider every (doomsday) scenario you can think of that would leave your clients without your service. For example:
If this all sounds a bit morbid – consider a more positive angle:
Once you’ve given some thought to potential business disruptions, it’s time to make a plan to handle them. Being prepared for succession comes down to these simple steps:
If you are an executive leader of a wealth management or broker-dealer firm, this is an important issue to address. If your advisors don’t have robust succession plans, get them support on this immediately. If they refuse to develop a plan, you have a problem. They aren’t likely working in your best interest and they certainly are not working in the client’s best interest.
Here are three straightforward ideas to implement at your firm:
Ironically, even insurance and estate planning firms are often unprepared for unexpected disruptions in their business. But regardless of your product offering and fee model – being prepared for the worst is just good business.
The Pursuit of Absolute Engagement, the recently published book by influential wealth industry veteran, Julie Littlechild, offers a unique roadmap for advisors who want to take their business from good to great. A major transformation is underway in the financial services industry. Innovative technology is disrupting business models and changing the tools and strategies needed […]
Xtiva added record number of new users and new customers in multiple market segments in 2016.
At Xtiva, we are strong believers in the power of the cloud-based computing to dramatically improve complex technology and system architectures in the financial services industry. Find out more about XtivaCloud, Xtiva’s next generation software platform. Reactive System Development is an exciting approach to building cloud-based systems that are flexible, loosely-coupled, secure and scalable, making […]
Alliance enables Xtiva and Athene clients to more easily access services. New York, NY – February 9, 2017 — Xtiva Financial Systems and The Athene Group have partnered to offer enhanced connectivity between their product suites, enabling their respective customers to materially increase technology capabilities and ROI on their Wealth Management technology stack. “Wealth Management […]
Advisory firms spend more money on compensation than on any other expense, so getting it right just makes good business sense.
Whether you’re an industry veteran or are new to the advice industry, the next five years are going to bring many changes to the wealth management and advice industry. These changes will threaten some financial advisors and their practices, yet will represent enormous opportunities to others.
If you’re looking to keep on top of finserv industry trends, you’d be well served by following the individuals below. It’s not an exhaustive list, and shouldn’t be interpreted as ranking of importance, but rather a starting point to fill your feed with some of the top commentary in the industry. Leading online voices in […]
The regulatory future in the financial industry became less certain with the election of a new administration. However, preparing your firm to be compliant with the DOL Fiduciary Rule is still the best strategy to manage risk and capture the opportunities and benefits of market leadership. The DOL Fiduciary Rule goes into effect on April […]
Reasonable Compensation – a key element of the DOL Fiduciary Rule – is unclear, complicated and time consuming. And it’s a ticking time bomb for firms and advisors that approach it poorly. The Department of Labor has left it up to the investments industry to sort out how to implement a Reasonable Compensation approach – […]