Partner Article

Support for ?orphaned? advisers crucial to success

True Potential says ‘orphaned advisers’ need more support if the industry is to prevent a further loss of expertise.

There’s been much discussion about ‘orphaned clients’ in the post-RDR world but True Potential says the industry needs to take into account those advisers who are now orphans themselves.

With increasing numbers of advisers being cut adrift by High Street Banks – HSBC recently joined Santander in announcing major cuts to services and departments – True Potential says the loss of many thousands of years’ experience is one of the biggest threats facing the industry.

Ernst & Young also predicts adviser numbers will drop from over 30,000 to just 20,000 in 2013 and Earl Glasgow, senior partner at True Potential Wealth Management believes that the industry needs to raise their game and offer more support to advisers.

He said: “The industry is rightly concerned with the advice gap – consumers becoming ‘advice orphans’ in the aftermath of RDR. However, the increasing numbers of orphaned advisers is an equal threat to the industry.

“The need for advice will not go away and I don’t believe that the authorities or services such as the MAS can be relied upon to provide this. It must be the private sector that comes to the rescue.

“Advisers need more support and they need it now. The projections about those leaving the sector may well come to pass, but those that remain in the industry need to know they can rely on support when they need it.”

True Potential says it is leading by example by ensuring more of its staff are in a position to give expert support to advisers, as 39 staff from the firm have started studying to gain a CISI Investment Diploma Level 4, bringing them each in line with the new RDR minimum standard for advisers.

They are expected to complete their courses by early 2014 and True Potential says the move is part of its ongoing commitment to provide sector-leading support to advisers, particularly to those who have recently been cut adrift.

The staff, from all three True Potential businesses (True Potential Wealth Management, True Potential Adviser Services and True Potential Investments), are currently working at a variety of levels within the business, from those with several years’ experience to recent recruits.

“We know what’s needed in today’s marketplace and we know how to provide it. Large numbers of our staff are undergoing the same training that is now required by law for advisers – this means True Potential is more in tune with the needs of advisers than any other supplier on the market, and better placed to offer meaningful support,” said Glasgow.

“It is a challenging time for advisers. While the introduction of an industry-standard qualification level is only the tip of the iceberg in terms of the changes that have taken place, it will lead to an increased level of professionalism throughout the industry and should raise standards – and expectations – across the board,” he added.

“Although not working as advisers, this is an opportunity for True Potential and our staff to demonstrate the organisation’s commitment to providing an industry-leading level of service and understanding to our clients.

“This is a significant undertaking for True Potential, but one which we feel will pay huge dividends in terms of the way we are able, at every level of our business, to respond to the changing needs of advisers.

“True Potential has captured 22% of the IFA market based on a peerless understanding of the way advisers work, and of the needs, in turn, of their own clients. This will cement our position and provide the perfect platform for our ambitious growth plans.”

The Investment Advice Diploma (IAD) has been developed by the Chartered Institute of Securities and Investment to provide employees advising and/or dealing in Securities or Derivatives, advising on Packaged Products and/or Managing Investments with the knowledge and skills required for their job roles.

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