A view from Nicholas Paul based on a career of feedback
This an important question to people seeking advice, but also to me as an adviser. When I took the decision to set up Nicholas Paul Wealth Management Ltd (NPWM) in 2019, it was done with this question in mind, as I had heard views from clients over many years and had also been subject to internal employer issues which affected my relationship with clients. My focus was to provide a service which, I believe, would satisfy the needs of those seeking advice and to defeat the frustrations which I am aware exist. Not every client wants the same service of course, but below are the consistent key points I have picked up from clients over the years (in no particular order). This relates primarily to clients who have an ongoing advice relationship, but the principles relate also to transactional client work.
Quality and reliability
- An adviser who is knowledgeable and experienced;
- Clear communication and reporting with no “silly errors”.
My view
This is pretty simple – clients want a decent service, and they pay for it. There is no excuse for poor quality in terms of the advice itself, communication or reporting.
Professional knowledge comes from both professional qualifications and experience, and I have heard clients (and professional contacts) relate concerns about some advisers lacking such knowledge and/or experience on a number of occasions. I have also seen errors made as a result of a lack of knowledge. All advisers need to develop, however, so it is slightly unfair to write-off younger advisers purely based on age, but where advisers do lack experience there should be a strong supervisory structure in place to ensure client advice is suitably monitored.
NPWM’s position
At NPWM, I conduct all advice matters, but even then there is a strict compliance process which involves file checking and “pre-sale” checks for higher risk advice. As a Chartered Financial Planner with a great deal of experience as a financial adviser (see my LinkedIn page for details of my experience) I am very focused on providing high standards.
A key driver for me when setting up NPWM was that all advice will pass though me, and any future advisers in the business will be under my watch. It is actually not uncommon that the senior managers of financial advice operations have no experience of working as a financial adviser – I see this as neither positive nor acceptable.
Consistency in the adviser relationship – “not another change of adviser!”
- Having a long-term advice relationship with the same person (or group of people) so there is greater familiarity.
My view
This has probably been the greatest frustration I have heard from clients over the years, and I completely understand it. I once became the appointed adviser for a couple of clients following the departure of a colleague, and I was their fourth adviser in the same company within 2 years. I have seen many similar cases over the years, with staff turnover being the primary cause. From my perspective as an adviser, I much prefer to have long-term client relationships.
NPWM’s position
At NPWM it is quite simple – this is my company, and I have no intention of quitting my own business, nor sacking myself! If you join NPWM as my client, you can expect me to be your adviser for the long-term.
For any future advisers joining the business, there will be a dual adviser approach whereby every client will have a “number 2” adviser alongside their primary adviser. My strategy for any new advisers will be to involve them as true stakeholders in the business, not just as employees.
Clear and fair costs and charges
- Clarity on how much is paid for services, including any associated costs for matters advised upon;
- Fair costs which are considered to be “good value”.
My view
Experience has taught me that clients do not mind paying fees if they consider the service to be good value. Value is very subjective, but I have seen and heard of situations where fee levels have been very significant without any credible justification. This is not just about the fees charged by the adviser; it is also associated charges such as ongoing investment management costs and product charges. For investments, such ongoing costs can create a huge drag on performance, and this is a matter which has been reported in the press over the years, especially with regard to pensions.
Today, it is possible to access good quality investment management services on the open market with costs which are significantly lower than in past years, and similarly the market allows for various competitive options for financial products and platforms.
NPWM’s position
When setting up NPWM, I ensured I would be able to access the whole market when considering investment solutions, i.e. be independent, as a “one size fits all” approach can be disadvantageous for clients. For example, some investment platforms have a charging structure which favours a client with, say, £50k to invest, whereas others have a charging structure which favours a £5m portfolio, and others in between. If an adviser is tied to one platform, this will provide simplicity for the adviser but it may result in unnecessary expense for clients.
I also decided to set initial advice fees at a rate which (I believe) are very competitive. It is my belief that the provision of a quality service will be the ultimate driver of income for NPWM, as positive word of mouth is worth more than a high initial fee.
A personal, bespoke service where trust can be built
- Adviser availability when contact is sought;
- Proactive communication from the adviser;
- Not feeling that you are one of a huge number of clients subject to the same approach;
- Confidence that your affairs, and your family’s affairs, are in good hands.
My view
The service provided by financial advisers will often come down to the personal approach of the adviser who looks after you, but this will always be affected by the broader operation of the advice firm. An adviser may be required to service over 100 ongoing client relationships, but I would say this is not possible unless there is a very slick and competent support team as part of a highly efficient operation. Any cracks in this would be problematic, and unfortunately I have seen this happen in my previous employed life with staff turnover once again a key factor. The quality and reliability of the service provided will determine trust.
NPWM’s position
Key to providing a good service where trust can be built is to avoid having a large bank of ongoing client relationships. Even with competent paraplanning and administrative support I would not seek to have more than 40 ongoing client relationships, so that I can commit a suitable amount of time to each client, with further time set aside for transactional work. Any future advisers will be subject to the same approach. By maintaining a straight-forward, transparent operation where I have time for clients, and with the experience I have as an adviser, I believe I can maximise trust.
What do you think?
If you wish to discuss what being a client of NPWM would be like, please drop me line at nick.paul@npwm.co.uk or call 0131 357 2455.
To view more details of my experience and qualifications as an adviser, please have a look at my LinkedIn page.