The advisers most at risk are those who:
- Have no cross-creditable qualifications and need to undertake the full Level 5 National Certificate in Financial Services qualification.
- Have large client bases where many of the clients have never been reviewed and are not even on their data base.
- Have a low understanding of information technology.
- Are focused more on selling product rather than providing a quality advice solution.
- Have relied on high upfront commission rates, selling a product and moving on, with no client service proposition in place to provide continuing value to the client year after year.
- Are not offering KiwiSaver to their eligible clients.
For these advisers, they face a year of study, implementing technology, learning new systems to cope with regulatory requirements and rebuilding client relationships that are being slowly eroded through poor ongoing service, no KiwiSaver and increasing client expectations. Many of these advisers have been in a temporary time warp. They have been earning good money, but have not been implementing change to keep abreast of the changing business environment.
Start the transition process now
The good news is that it is not too late to change. A plan of attack that an adviser may need to consider, if their business resembles any of the warning signs listed above is:
- Engage an external compliance expert who will undertake an analysis of where the business actually is at and where it needs to be by December 2010.
- Develop a plan to get to the required end result and ensure you have obtained the necessary capital and cash to invest in the business to fund this change.
- Identify a Level 5 National Certificate in Financial Services education provider who will provide an education pathway that not only enables you to obtain your qualifications, but actually provides you with valuable business tools and practical solutions that will help your business become more profitable.
- Upskill your staff – this needs to happen immediately.
- Learn to type, if you actually lack this skill.
- Implement into your business a comprehensive technology solution that will help automate many of your manual tasks. Spend money on the best trainers. There is little point in purchasing technology and then not fully utilising it.
- Develop a client service proposition that will enable you to continuously justify the remuneration you receive. Have processes in place to ensure you actually deliver what you say you will deliver.
- Talk to your clients who are of eligible age about KiwiSaver. If you are not talking to them about KiwiSaver, then there is a very good chance some other adviser either is or soon will be. You need to start ring fencing your clients.
- Undertake a client satisfaction survey to identify what your clients really think about you and what they would like you to deliver for them.
- Purchase a website package so you can communicate with the tens of thousands of New Zealanders who each month are searching on line for insurance, investment, mortgage and KiwiSaver advice.
2010 is going to be a busy year. The secret to survival is to start the transition process right now. Do not wait until later in the year.
