While the upcoming implementation of RDR is likely to benefit clients in terms of the quality of advice they can expect to receive, it also serves to level the playing field for firms themselves. This may be advantageous in that it enhances the perception of the profession as a whole, but it also means that the task of differentiating yourself from one’s rivals could potentially need re-evaluating.
After all, while the guidelines issued by the regulator may be new, many firms have already been operating to the highest possible standards anyway and the practices now becoming mandatory have simply given average firms the impetus to catch up.
One way that firms can distance themselves from the pack is to achieve Chartered status by meeting a selection of stringent criteria from the Chartered Insurance Institute. To attain this recognition, firms must commit to a code of ethics and adhere to continuing professional development and qualification requirements. It reassures clients that they are dealing with an organisation that is not simply happy to do the bare minimum required to stay in operation, but is committed to being as transparent, informed and professional as possible.
We have always encouraged all our offices to consider becoming Chartered and it was a significant fillip to witness our sixth firm attain the status recently, which means that a quarter of our members have now achieved the honour. We have assisted firms every step of the way in achieving Chartered status and, such is our expertise in the area, some of our newest recruits have joined Perspective in the knowledge that we can assist them in realising their ambitions in this area.
As well as Chartered status for firms, individuals can attain similar recognition, so even if their organisation is not sufficiently interested in the pursuit of excellence, there is nothing to stop advisers striving to be the best they can. To stand still is to go backwards in a profession as fast-paced as the financial services arena, so ensuring you are at the top of your game individually not only increases your value to your current firm, but also makes you a more attractive proposition to prospective future employers, or indeed acquirers. It can be easy for advisers and firms to opt out of going the extra yard, but when the financial rewards are realised in terms of profitability or individual pay rises then the hard work pays off.
It is perhaps understandable that at a time when most firms are pre-occupied with becoming RDR-ready that going the extra mile and becoming Chartered may not seem an immediate priority, but it could also be argued that while systems and processes are being upgraded anyway, it makes sense to push forward and attain the status now rather than improving in increments. For those so inclined, it needn’t take significant time or resources away from everyday operations either and we offer our offices considerable assistance to achieve this ‘gold standard.’
RDR presents the industry with a wonderful opportunity to move to the next level, but there is a possibility that the truly exceptional firms may be camouflaged as standards improve across the board. Attaining Chartered status really should be on the agenda for firms and individuals who are fully committed to going beyond the call of duty to ensure their clients are receiving the best advice possible.
David Hesketh is Group M&A Manager at Perspective Financial Group Ltd