Tim Harford's View of the Housing Market

Promoting Advice

Fred Dodds of the IFA is quoted as saying this is the time to promote advice in this article on goodreturns. Link. This is the time to promote advice, and even the FMA is saying that it would like to promote the use of advisers.

There are challenges with the idea of promoting advice. 

Some product providers may well ask - why would I promote my most expensive channel? This issue was exemplified by the panel session at the recent Newpark conference when Milton Jennings of Fidelity Life pointed out how few insurers sell only through financial advisers. Some advisers, too, may not always wish to promote advice. Some who have no problem acquiring customers might see it as a donation to competitors. Others that increasingly run sales businesses offering both advice and no-advice sales may see the need for a customer access strategy - not a wholehearted push to drive clients into one solution. Consumer groups may see advice promotion as increasing the cost of access to certain products. Look around you at an industry gathering and consider the different views in the room. Not everyone who looks like you is your ally.

I like advice. I also pay for advice, and I even follow the advice. I promote the idea of getting advice. You can see that in the series of posters that Quality Product Research Limited issues which feature prominently in the main title the words "Why you need advice" and always conclude with the instruction "Talk to a financial adviser." Because I deal with lots of advisers I actually want the advice segment to do well. 

It is among the businesses that support advisers you will find those willing to promote advice. The reverse is also true.



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