It is so easy to think in extremes.
We live in a society that often finds itself packaging viewpoints and decision-making into ‘one camp or the other’ and the financial industry is no different.
Passive versus active, DIY versus advice, independent versus restricted – we just can’t escape the duality that haunts the industry.
The reality is that, as the debate flows over the right and wrong way to offer financial advice, the people who suffer the most are those caught in the middle: the clients.
I believe fiercely in the value that a robust financial plan can bring to a client. I understand too that there are self-motivated, enthusiastic investors who enjoy choosing their own investments and building portfolios.
The problem for our industry is the twisted enjoyment it seems to get from always taking a polarised stance. Clients have to fit into fixed business models, largely as a result of what the adviser/firm believes in. This isn’t a choice; it is simply ramming a certain philosophy down a prospect’s throat.
We need to allow clients to take greater control over which services suit their specific needs at that particular time – it is quite possible to be a DIY investor and still take advice from an adviser.
Until we let go of our prejudices there will continue to be an advice gap between the extremes of advice and DIY.
Chris Williams is chief executive at WealthHorizon
