For professional use onlyFor professional use only

Working Working closely with closely with clients to clients to maintain their maintain their confidence in confidence in investmentinvestment

CISI Private Wealth ManagementCISI Private Wealth Management Conference 2012Conference 2012

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May you May you live in live in

interestininteresting times.g times.

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“ “Like it or not we live in Like it or not we live in interesting times. They interesting times. They are times of danger and are times of danger and uncertainty; but they are uncertainty; but they are also more open to the also more open to the creative energy of men creative energy of men than any other time in than any other time in history.” history.”

Robert Kennedy - Day of Affirmation address– Cape Robert Kennedy - Day of Affirmation address– Cape Town, 1966Town, 1966

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Bruce’s important Bruce’s important surveysurvey

Free to download at Free to download at www.bruceweatherill.www.bruceweatherill.

comcom

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ProblemProblem

2011 © Bruce Weatherill Executive Consulting Limited, trading as Weatherill Executive Consulting. All rights reserved

For professional use onlyFor professional use only

ProblemProblem

2011 © Bruce Weatherill Executive Consulting Limited, trading as Weatherill Executive Consulting. All rights reserved

For professional use onlyFor professional use only

“ “... a basic truth: If clients ... a basic truth: If clients don’t trust you they will don’t trust you they will eventually stop doing eventually stop doing business with you. It business with you. It doesn’t matter how smart doesn’t matter how smart you are.” you are.”

Source: Resignation letter published in the New York Times 14Source: Resignation letter published in the New York Times 14thth March March 20122012

Greg SmithGreg SmithFormer executive director & head of United States Former executive director & head of United States equity derivatives business in Europe, the Middle equity derivatives business in Europe, the Middle East and Africa – Goldman SachsEast and Africa – Goldman Sachs

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The IFA SectorThe IFA Sector

• Client focussedClient focussed

• Rumours of the death of the Rumours of the death of the

IFA are greatly exaggeratedIFA are greatly exaggerated

• Upper end of sector is Upper end of sector is

thrivingthriving

• Chartered practitioners & Chartered practitioners &

CFP CFP ®® charter holders charter holders

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IFAs alive and wellIFAs alive and well

The top 10 IFAs in the The top 10 IFAs in the

South-East have £1.9 South-East have £1.9

billion in assets under billion in assets under

advice between them.advice between them.

Source: Citywire “New Model Adviser” – 6th March 2012

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Learn from othersLearn from others

• We need to focus on We need to focus on

what the client wantswhat the client wants

• Develop ‘soft’ skillsDevelop ‘soft’ skills

• Firms need to be truly Firms need to be truly

client centricclient centric

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Tom Peters Tom Peters

"Mr. Peters ... says that "Mr. Peters ... says that effective management is effective management is management that delivers more management that delivers more value to customers and more value to customers and more opportunity for service, opportunity for service, creativity and growth to creativity and growth to workers. He is saying that the workers. He is saying that the decent thing to do is also the decent thing to do is also the smart thing. It's a wonderful smart thing. It's a wonderful message.“message.“

Paul Weaver, Hoover Institute, in the Wall Street JournalPaul Weaver, Hoover Institute, in the Wall Street Journal

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““A Passion for A Passion for Excellence”Excellence”

““The first of two sustainable The first of two sustainable strategic advantages we have strategic advantages we have observed is an obsession with observed is an obsession with customers. Customers, not customers. Customers, not markets. Not marketing. Not markets. Not marketing. Not strategic positioning (whatever strategic positioning (whatever that means). Just customers. A that means). Just customers. A ‘market’ has never been observed ‘market’ has never been observed paying a bill. Customers do that.”paying a bill. Customers do that.”

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““A Passion for A Passion for Excellence”Excellence”

““The winners stun us The winners stun us not by their cleverness, not by their cleverness, but by the fact that but by the fact that each and every tiny each and every tiny aspect of the business aspect of the business is just a touch better is just a touch better than the norm.”than the norm.”

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The objectiveThe objective

TRUSTEDTRUSTED

ADVISERADVISER

STATUSSTATUS

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5 STEPS TO TRUST5 STEPS TO TRUST

• Spend Time with your Spend Time with your clientclient

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5 STEPS TO TRUST5 STEPS TO TRUST

• Take Time with your clientTake Time with your client• Build RapportBuild Rapport

For professional use onlyFor professional use only

5 STEPS TO TRUST5 STEPS TO TRUST

• Take Time with your clientTake Time with your client• Build RapportBuild Rapport• Gain insight and Gain insight and

UnderstandingUnderstanding

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The obvious?The obvious?

KNOWKNOW

YOURYOUR

CUSTOMERCUSTOMER

For professional use onlyFor professional use only

Know your clientKnow your client

• Identify what the client Identify what the client sees as their problem:sees as their problem:– Living too longLiving too long– Dying too soonDying too soon– ContingenciesContingencies

• Where does your client Where does your client fit?fit?

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Know your clientKnow your client

• If there is no If there is no problem there is no problem there is no need for a solution!need for a solution!

For professional use onlyFor professional use only

5 STEPS TO TRUST5 STEPS TO TRUST

• Take Time with your clientTake Time with your client• Build RapportBuild Rapport• Gain insight and Gain insight and

UnderstandingUnderstanding• Show how your Solution Show how your Solution

works for your client’s works for your client’s requirementsrequirements

For professional use onlyFor professional use only

What people What people reallyreally want want to know:to know:

•Will it work?Will it work?

•Will it work well?Will it work well?

•Will it work in the future?Will it work in the future?

For professional use onlyFor professional use only

5 STEPS TO TRUST5 STEPS TO TRUST

• Take Time with your clientTake Time with your client• Build RapportBuild Rapport• Gain insight and Gain insight and

UnderstandingUnderstanding• Demonstrate your Demonstrate your

understanding by Showing understanding by Showing how your solution works for how your solution works for your client’s requirementsyour client’s requirements

• Tend to the ongoing client Tend to the ongoing client relationship by giving relationship by giving excellent serviceexcellent service

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Remember!Remember!

IF YOUR CLIENTS HAVE IF YOUR CLIENTS HAVE

CONFIDENCE IN YOU CONFIDENCE IN YOU

THEY WILL HAVE THEY WILL HAVE

CONFIDENCE IN THE CONFIDENCE IN THE

INVESTMENTS YOU INVESTMENTS YOU

RECOMMENDRECOMMEND

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Remember!Remember!

TRUSTED TRUSTED

ADVISERADVISER

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5 STEP SUMMARY...5 STEP SUMMARY...TT-- take TIMEtake TIME

RR-- build RAPPORTbuild RAPPORT

UU -- gain insight and gain insight and UNDERSTANDINGUNDERSTANDING

SS-- SHOW how the solution SHOW how the solution works –works –

for themfor them

TT-- TEND to your ongoing client TEND to your ongoing client relationshiprelationship

For professional use onlyFor professional use only

““I hope this can be a I hope this can be a wake-up call ... Make the wake-up call ... Make the client the focal point of client the focal point of your business again. your business again. Without clients you will Without clients you will not make money. In fact, not make money. In fact, you will not exist.”you will not exist.” Source: Resignation letter published in the New York Times 14Source: Resignation letter published in the New York Times 14thth

March 2012March 2012

Greg SmithGreg Smith

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Positive feedbackPositive feedback

2011 © Bruce Weatherill Executive Consulting Limited, trading as Weatherill Executive Consulting. All rights reserved

For professional use onlyFor professional use only

Survey conclusion...Survey conclusion...

2011 © Bruce Weatherill Executive Consulting Limited, trading as Weatherill Executive Consulting. All rights reserved

““Client centric organisations will Client centric organisations will be the most successful, as high be the most successful, as high net worth clients who regard their net worth clients who regard their wealth manger as their ‘Trusted wealth manger as their ‘Trusted Advisor’ are more profitable. Such Advisor’ are more profitable. Such clients give their wealth manager clients give their wealth manager a greater share of their ‘wallet’, a greater share of their ‘wallet’, are more likely to grant portfolios are more likely to grant portfolios managed at the discretion of the managed at the discretion of the wealth manager, do not leave, wealth manager, do not leave, and very importantly, are an and very importantly, are an excellent source of new business excellent source of new business in terms of referrals.”in terms of referrals.”

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KEY CONCLUSIONKEY CONCLUSION

•KnowledgeKnowledge•ProfessionalismProfessionalism•EthicsEthics•IntegrityIntegrity

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KEY CONCLUSIONKEY CONCLUSION

TRUSTED TRUSTED ADVISERADVISER

MY WORD IS MY WORD IS MY BONDMY BOND

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““Fin”Fin”