The Leading Minds Academy says fact find documents and Statements of Advice need to change in order to cope with future fee-for-service remuneration models.
Head of Leading Minds Academy, Brian Boggs, says research has shown that advisers have difficulty in communicating back to their clients over 50% of the relevant information that they collect via current fact find documents.
… most fact finds are designed to produce a product solution rather than an advice solution
Mr Boggs asserts that most fact finds are designed to produce a product solution rather than an advice solution in a market where fee-for-service advice is emerging.
“For advisers to remain profitable, they need to understand how they can deliver advice solutions and they need access to better discovery tools and SoAs that have considered all aspects of a clients unique situation,” said Mr Boggs.
Mr Boggs points to the discovery tools that his learning and information company, ili (Information Learning Implementation), has developed, as examples of how future fact finds and Statements of Advice will address the issue of client solutions from a broad advice point of view, rather than from a product-based perspective.
According to Mr Boggs, the tools his company has developed will give advisers an opportunity to successfully address an untapped market of over three million small to medium businesses that need sound advice:
“My concern is that most discovery tools that I have seen allow an adviser to make a product sale but do not allow the ability to scope out good, profitable, advice solutions,” said Mr Boggs.
