So putting it in a simple question. Is the internet spelling the death of the Independant Financial Advisor? When all the information is now going to be presented from "websites" which are gradually and slowly building up trust?
I think it is the case..for some products, and is it already effecting the industry?
I'm thinking of mortgages also. Now, what used to be only the domanin of the financial sales person to plug in a few keys on the computer, now anybody can do it for themselves on the internet.
with regard to mortgages, I agree that anyone can look up current mortgage deals online. However, it may still take the expert to ensure that the public are getting the best deal for them, taking into account other financial interests etc. Additionaly, a lone-surfer can gather a lot of information, but it will rarely match up to the years of experience possessed by a dedicated financial advisor. I have recently applied for a mortgage through such an advisor. Before talking to him, I spent a lot of time reading up about mortgages but, although I understood the basics, my knowledge was still very limited compared to his.
But, the point that people have been making is that it is not so terribly difficult to understand financial products....they are not at all difficult, they deal in no more complex maths than percentages and interest rates and compounded interest, this is not above the basic GCSE maths holder...to comprehend and look at the differences.
taking into account other financial interests etc. Additionaly, a lone-surfer can gather a lot of
Years of experience do not make someone good or not. I am not decrying the role of a financial advisor, but I have seen jobs advertised to become a financial advisor after two weeks training at a companies head quarters, they are then considered "having the quals necessary" to sell their products..also no qualifications are needed for that course.
Ok. let me ask you this question...if I may. How do you know he is'nt choosing the mortgage that gives him the best deal? Do you know how much commision he's getting?
Generally it seems that most consultants get paid via the products they sell...so there is a natural tendency to sell you the best product that gives them the most profit...instead of paying him for his service and getting the best deal where he is not getting commision..That is how I would prefer to use a financial consultant.
Yes but many people do not want to do the maths or research.
I would like to know which companies do this and I hope they quickly go out of business. Come on Stephen you keep saying that you have integrity, don't fall for this shit, get the proper training and qualification and go out there and do a good job.
Because he is required to tell you how much proc fee he receives from the lender! By the way what other industry has to tell you what commission the salesman recieves?
How much would you want to receive if you were doing the job?
How much would you be prepared to pay upfront for the service as a customer?
If you get a Nationwide mortgage through me, I'll get paid by Nationwide, say 250, if you do all the research yourself (and don't think for a minute that the various wesites have all deals on them) and go with Nationwide direct, where do you think the 250 goes? They will not give it to you and you do not get a better deal direct, so instead of using the knowledge and experience of an adviser (who you could sue if he gets it wrong!) you spend all the time and effort to get the same thing and save yourself absolutely nothing.
I have a good friend who is an accountant, with a degree (1st with honours), spent 6 hours doing the research, picked a mortgage and dealt direct with the lender, I could have instantly advised him of a similar product at 0.49% lower and saved him about 43 per month without doing any research! He had problems with the lender and had to keep phoning me for advice how to deal with it. This is a guy who should understand finance, knew how to research and is very intelligent, but still cost himself over 1000 over the 2 years he's tied into this mortgage, so it isn't always that simple.
For those who want to do it themselves, great, but even on these programs showing how easy it is to do it yourself they have a broker in the background giving the advice.
People are just waking up to the fact of how much they can save by buying a whole range of goods and services over the internet. Financial products is just one area of this, and it naturally lends itself to being sold over the net.
What has integrity got to do with me observing the general market trends? What has my integrity got to do with reading adverts and observing what financial companies are doing ? What has my integrity got to do with the misselling of financial products that has given the industry a bad name?
Regardin my interest to sell, is only limited to simple products that can be sold, I am interested in asking the question...what is the future of middle men? That is an entirely separate issue from me asking about which financial products can be sold without qualifications...I am making the point that getting qualifications is no big deal, it is not like getting a degree at uni or something...
don't fall for this shit, get the proper training and qualification and go out
If I had interest to get seriously involved in financial sales, I would get trained, however, I am making the point, that the products are not so difficult to have knowledge about, especially if you have a degree....in business or accounting...However, this thread is not about me getting into selling financial products.
I am asking the question, what impact will the internet have on the middle men? I think it will have a strong impact..what do you think?
The type of jobs I've seen advertised are with companies like Norwich Insurance to sell some of their financial products, could be pensions? insurance? or mortgages...but the point is that they go on a small course and start selling... Sun Alliance also..I have seen adverts for..
Oh really? That was never made clear to me at all, in fact they never once mentioned that at all to me? To be frank I would find it much easier to use the internet...and quicker..and alot less hastle. If a client can go directly to the company selling the mortgage then thats what many would do....
Not just for avoiding commision, but for the knowlege they themselves have checked out the interest rates...I found better rates on the internet than I was offered via the financial middle men, they where giving me aload of horse manure..telling me they had the cheapest on the market etc.etc...
I am not interested in selling mortages right now...as I'm not qualified to sell them.
Ok. none as I would look on the internet and do it for free.
Yes but the value of the internet which is no hastle and is easy to use, gives me the knowledge that this is what I want........so in some cases you can save money..as they do offer better rates on certain products..
For example.......one company going direct maybe offering that same kind of mortage at a cheaper rate! Then most likely that company is not paying a network of sales people...
Yah but he wanted to do it himself, and he did.
He had problems with the lender and had to keep phoning me for advice how to deal
Not allways so simple..as I said, I think there is allways a place for a middle man, and a sales person, I am asking the question, how much will the industry change..
For example..look at insurance, that has changed now....it is effecting small brokers......this is financial product..I am talking about all financial products ranging from opening a bank account. to putting you rmoney in the highest interest account.
All this now means an intermediary is not needed......I am not jsut talking about one small area..such as mortages etc.etc.
In fact. Due to my strong interest and strong believe that it is going to effect the way people and financial middlemen do business in the future, if I was having all the relevant qualifications which I assume that you do, and if I was having a strong reputation in financial sales that you say you do, then I would go about developing my own website, very much the way that John Charcoal has done.
Start building and capitalising on the changing market ahead.
Think how valuable all those people who are your previous satisfied customers, to me that is a really really powerful selling tool, as to why people should trust you, and believe you rather than others..to say you have never had a problem with a single endowment policty!!
I am not a financial sales person, you know I just make general enquiries about the products availalbe, so correct me if I am wrong, is it a unique selling point, to have never had any complaints? I am not even an expert yet I know about the scandals and controversy involving the endowments misselling and I am not even having an endowment policy! So surely that would be a really big selling point to gain new clients and new business.
So, thats what I would do if I was in a similar situation to yours. I would move into the internet, and stay ahead of the game.
But then again perhaps you don't want or don't need new clients? But if that is the case I would allways wonder about if I should include a big (yet) in my thinking. regarding future sales.
I would freely capitalise on what you've said, about people wanting face to face, and all the complete product ranges not being available and I would put that on my website,,,,,I would capitalise on all that you have said, to increase "trust" and increase future sales...but put it all into the internet so that I can get new clients..who don't even know me.
But that's where your extra value is, in getting them to do it through you and most people who take advice tend to deel with you from there on in.
So we're agreed then, I only want this industry to get better and recover from the conmen who have thrived in the past and other mistakes that have been made.
At Norwich Union, they (the company) are regulated, so even a non regulated (pure protection) policy like term assurance is classed as regulated if sold by their staff. However, they do have execution only business, where a customer rings up after seeing one of the leaflets offering life cover from XXp per day and asks for 100,000 of cover, no advice has been given, so it's not relevant, however these people are not trained as advisers, just order takers. Or maybe it was for home insurance department.
Not many companies will only deal direct , although there are some, because as I've said borkers or advisers or intermediaries or IFA's whatever you want to call them are the single biggest source of income in the business. At NU Direct, if I went to see a client and they had dealt with an IFA in the past and that IFA found out I'd seen them, they took any commission off me and paid it to the IFA, this actually happened to me, the client wanted to see NU directly and felt they got better service and advice than the IFA and told them so, he complained I got a bollocking and he got my commission (bastard).
True, but it's better to let a company know they were crap, so they can improve in the future or correct any mistakes they made.
But you're doing his job then, let him work for it.
Ok, but lets assume you've gone because you can't do this yourself, so what if he want's 400 upfront for sorting your mortgage or he takes nothing from you but gets 600 in commission and you get exactly the same deal what then? because lenders pay brokers because of the work they save them and do not rebate it in the form of lower rates etc. Most people (me included) will take the pay nothing and let him have commission.
Recommended, trusted etc is good, but did you know that a tied agent has to jump through paperwork hoops to cover his back and the insurance companies, so the advice has to be good or the company compliance officer will chuck it out, an IFA answers to himself, so can sell what he wants ie best commission rates (within reason). Of course both answer then to FSA.
I think there are some potential flaws (as with all theories), but overall it's a good set of criteria to use.
I do have a website, but only fro generic information as I beleive that the only way for a broker to work is to deal with clients face to face, or by telephone at the very least, I'm not doing my job properly otherwise.
PS my accountant mate did his research at Charcoal online ;-)
It's an aid to advertising, not to doing business as far as I'm concerned.
You are right, my past customers are my best advert and get me a lot of my work, that's why I've set up on my own.
I do not know whether there are many other advisers out there that have no claims against them, the ones I know personally don't, but I don't think it's a positive marketing message to say trust me because nobody else has complained, that incites the complainers into action and still drags the industry through the mud by inferring that other advisers are bad.
Hell no, more clients the better ;-) then I can take on other suitable advisers.
I am doing all this, the website is being rewritten again at the moment, but I will not sell mortgages or life cover from there, I already sell home insurance and mppi insurance online, but the others I need to explain to clients directly as each client is different with different needs and different understanding and I can't cover this online.
You could! You might get a better deal trusting an unknown broker, or you might not! Pays your money and takes your chances. Unless of course your in an industry that is making you so financial secure you don't have to worry about saving money?
Oh, I wouldn't rate them that highly, chartered status would probably count as degree level, but, IIRC, that needs 9 papers as opposed to the three for an AFPC.
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