"Brokers should seize the mantle for their colleagues as well as themselves; spread best practice, advocate a wider view on advice, and find avenues of support for the clients"
How much ‘bad advice’ is out there?
It’s impossible to quantify. That said, across the industry it is generally accepted that advice standards are significantly higher than were the case a decade or so ago. It is also the case that advice continues to improve; the recent CCL and secured loan changes have assured that this will continue too. It is still out there though...
What should we do about it all?
The regulator knows all of this of course. They have taken steps over the years to attack these and other issues which is a fantastic benefit for the industry. After all, with a less profitable environment we are seeing a far higher standard of advice across the board. This is down to the regulator but also down to the reduced margins making the sector less appealing to some.
The industry needs to do more than rely on the regulator. A credible and strong advice environment is a foundation for a stable business and for a stable market. Quality advice across the sector is to the benefit of anybody who takes the market seriously and who wishes to operate a business within it for the long term. With that in mind, brokers should seize the mantle for their colleagues as well as themselves; spread best practice, advocate a wider view on advice, and find avenues of support for the clients whose cases are a little more difficult too.
The Future of Advice
As we enter the world of robo-advice and online client facing solutions in more and more regulated areas, we are likely to see great competition for advice but also a new field that will be susceptible to the ‘bad advice’ label. Brokers of today have the ability to use this technology and their own human skills to compete in this space for years to come but it must be done with one thing in mind throughout: the best advice for the client.
As this is such a vital area for the intermediary sector as a whole, please feel free to take part in this discussion and comment or get in touch. The more we can do to tackle these issues, or perceptions, the better for us all.
