Quality over quantity is an oft-used idiom. Every adviser network wants good quality members, even if that means fewer of them.
This is especially true as the industry changes. Driven by the Financial Conduct Authority, regulation appears to be travelling in one direction – making sure the focus of firms is fully on consumers.
This is being driven by the new Consumer Duty, which was first proposed in May 2021. The intention of the duty is to ensure a higher standard of care is provided to consumers by financial firms.
It focuses on four outcomes, representing the following elements of the relationship between company and consumer: communications, product design, customer service, and price and value.
A spokesperson for a major network told Money Marketing that, ultimately, they have a responsibility to protect end customers. Therefore, “weeding out the poor performers” is the right thing to do.
But when it comes to measuring how “good” an adviser is – how do they decide? And is a so-called “productivity drive” the right way to go about things?
Platforum analyst…
