Lets hear it from the IFA's ....

saver861

I suspect being an IFA is at times a precarious business - then again, so a surgeon would say the same, and an electrician, the butcher ....

Public forums such as this often give the client side view which will be subjective at least. It is actually in the best interests of both parties for a constructive win/win relationship.

So I'm wondering if the IFA's could give some insight into how that can be achieved. The percentage of bad IFA's is probably no different to that of any other business or trade. I also suspect many IFA's walk away from clients because some clients would just be too difficult to deal with - both parties have a choice.

What makes a good IFA / Client relationship? What does a good IFA expect from a client? What are the general obstacles to progress? etc etc etc ....

jem16

saver861 wrote: »

So I'm wondering if the IFA's could give some insight into how that can be achieved.

I'm not an IFA so not sure if you want my input or not? However having worked with my IFA for almost 9 years and built up what I consider a very good relationship, it might help.

What makes a good IFA / Client relationship?

I think good communication on both sides is the key element here. From my point of view asking questions until you're sure of what is happening and why. I would expect the IFA to listen to me and not be unwilling to answer those questions, even if they may seem stupid at times. I'm pretty sure in the earlier years, my questions were pretty stupid but not once did he tell me that or refuse to answer them.

What does a good IFA expect from a client?

I can't fully answer that one for obvious reasons. However as a client I feel my IFA would expect me to listen to his advice - why else pay for it otherwise? However he wouldn't expect me to blindly just accept all that he said and just sign on the dotted line. In the earlier years we spent a lot of time simply talking to one another before any decisions were made to make sure I was happy with them. As I learned over the years I may have had less questions and as trust built up, may have felt less of a need to ask them. However I still do bat off ideas, some of which never actually happen as something better has been discussed - that may even mean nothing is done.

What are the general obstacles to progress? etc etc etc ....

Biggest issue to me would be lack of communication on both sides. If there is a problem from your end and you don't discuss it then how will it be resolved? Similarly I would expect good communication from my IFA and expect him to tell me honestly what he thought.

saver861

jem16 wrote: »

I'm not an IFA so not sure if you want my input or not?

Well it is for anyone to input - if anyone can contribute to making the arrangement better then thats a benefit. Its easy to go IFA bashing - sometimes merited no doubt, sometimes not!

jem16 wrote: »

I can't fully answer that one for obvious reasons. However as a client I feel my IFA would expect me to listen to his advice - why else pay for it otherwise?

As I learned over the years I may have had less questions and as trust built up, may have felt less of a need to ask them.

Trust will always be the bedrock of these arrangements. However, for a client to blindly trust an IFA could be disastrous for that client. Equally having insufficient trust in an IFA will likely mean not following the advice or wanting to have it validated by another source etc.

Personally, if I were to engage an IFA he/she would have to be able to demonstrate a positive outcome from my current position, over and above a) the fees and b) what I can do myself.

Thrugelmir

saver861 wrote: »

What makes a good IFA / Client relationship? What does a good IFA expect from a client? What are the general obstacles to progress? etc etc etc ....

Similar to the relationship I would expect with a solicitor, bank manager etc etc. I don't see why an IFA would be any different. Relationships are 2 way and built over time. At the end of the day it's down to the individuals and the manner in which they conduct business.

dunroving

saver861 wrote: »

Well it is for anyone to input - if anyone can contribute to making the arrangement better then thats a benefit. Its easy to go IFA bashing - sometimes merited no doubt, sometimes not!




Trust will always be the bedrock of these arrangements. However, for a client to blindly trust an IFA could be disastrous for that client. Equally having insufficient trust in an IFA will likely mean not following the advice or wanting to have it validated by another source etc.

Personally, if I were to engage an IFA he/she would have to be able to demonstrate a positive outcome from my current position, over and above a) the fees and b) what I can do myself.

This is a biggie, IMO. Obviously there are no guarantees (investments can go up or down, etc.) but I'd expect a competent IFA to show me in ways that a mere mortal can understand why his/her plan is superior to mine.

dunstonh

but I'd expect a competent IFA to show me in ways that a mere mortal can understand why his/her plan is superior to mine.

You cant. An IFA can provide strategy, structure and due diligence but that doesnt mean it will perform better than a selection of investments with no due diligence and possibly no structure (or a different structure if one exists). Everyone can be lucky or unlucky. You may be willing to use investments an adviser would not be prepared to use for you.

gadgetmind

jem16 wrote: »

However he wouldn't expect me to blindly just accept all that he said and just sign on the dotted line.

So you've never had a wodge of paperwork the size of a telephone directory dropped on you, sporting yellow tags marking the pages where you need to sign by the highlighted X's?

gadgetmind

dunstonh wrote: »

You may be willing to use investments an adviser would not be prepared to use for you.

I kind of wish I'd still been using an IFA when I started taking an interest in subordinated bonds, preference shares, and similar "off the risk scale" instruments. I've got a mental image of the outline of a running (as fast as pinstripes allow) man punched through my front door as he beat a hasty retreat.

dunroving

dunstonh wrote: »

You cant. An IFA can provide strategy, structure and due diligence but that doesnt mean it will perform better than a selection of investments with no due diligence and possibly no structure (or a different structure if one exists). Everyone can be lucky or unlucky. You may be willing to use investments an adviser would not be prepared to use for you.

Maybe I chose my words incautiously - what I really mean is that he/she should be able to explain to me (in ways I can understand) why he/she is suggesting his/her strategy rather than my strategy.

I can see that it's impossible to guarantee superior performance (luck comes into it), but if he/she can't explain why they are suggesting you do a, b and c rather than x, y and z, then I'd say they are either a pretty poor communicator or don't know what they are doing (or both).

I don't see financial advice as being any different than other professional advice, in this regard. If someone came to me asking me to give them a program to lose 10 kg in weight and improve their fitness and I can't explain why I am suggesting the program I'm suggesting, either or both of the above also apply.

[Hopefully he/she would believe their strategy is superior to mine; that's what I was trying to get at]

gadgetmind

dunroving wrote: »

I don't see financial advice as being any different than other professional advice, in this regard.

I'm not so sure. It seems to be a massive "all or nothing" process, which isn't the way it works with (for instance) my accountant. I do some research and thinking, email him a spreadsheet or two, he suggests a few tweaks, we debate pros and cons, and away we go.

With IFAs I never felt part of the process (despite trying to be) and found everything very opaque.

Q: "Why have you recommended 30% in Commercial Property?"
A: "Based on your attitude to risk."
Q: "How does that work?"
A: "Computer says."

jem16

gadgetmind wrote: »

So you've never had a wodge of paperwork the size of a telephone directory dropped on you, sporting yellow tags marking the pages where you need to sign by the highlighted X's?

Never had paperwork of that length, no.

Yes there has been paperwork with the appropriate sections marked where signatures were required. However this was after lengthy discussion as to the need for it and it still won't stop me reading the parts not marked by yellow tags.