2019 Value of an Adviser Report: Help your clients understand the value you deliver

Aim: To quantify the technical expertise an adviser provides, and the emotional support and guidance an adviser offers throughout a client’s investing journey.

Outcomes: At the end of this module financial advisers will:

  • Understand the 4 key areas in which they can add value for clients, and
  • Learn how to express and explain that value and the benefits to their clients in a meaningful way.

Abstract: Increasingly the industry is moving away from commission-based remuneration to fee for service arrangements. Yet advisers can struggle to explain to clients how they add value to justify their fee.

This report from Russell Investments looks holistically at the real value advisers deliver for their clients — from the knowledge and expertise they bring in building personalised portfolios through to the support they provide when market conditions change. It estimates that the value of financial advisers amounts to more than 5% value-added per year to a client.

The report identifies specific areas in which an adviser can add value and by demonstrating to clients how this value exceeds the fees charged, leading to improved client engagement and satisfaction. Ultimately, this helps advisers to build stronger and more meaningful relationships with their clients.