A world of change

The insurance industry is currently being forced to exist in a state of relative flux where the future is uncertain and change is being driven by a number of factors which are beyond the control of financial planners. They can however adapt to this change in order to survive, and the importance of succession planning has a major role to play in this.

Donovan Adams, CFP®, 2014 FPI Financial Planner of the Year award finalist, is firm about the fact that financial planners need to be on top of their game to achieve this.

“Regulatory changes and compliance alone have forced many advisers to seriously reconsider their service offerings and business models,” says Adams.

The recipe to success

To be a finalist of the FPI Financial Planner of the Year is a major achievement and is a testament of many years of hard work.

“Success is largely dependent on your work environment. Your company values, culture, structure, processes and support all directly influence your ability to perform as a planner. Either they assist and enable you to give your very best, day in and day out; or they hinder and restrict you in some way. Practically speaking, I treat all my clients with the utmost care and respect. I take a genuine interest in their lives by asking the right questions and then I listen really well. Being a good listener is a unique skill which is often not fully appreciated. I aim for 80/20 talk time in my meetings - clients speak for 80% and I speak for 20% of the time,” says Adams.

Despite the challenges which are prevalent in the industry, Adams says that the changes have not forced him to alter his approach to business. “As a business, Chartered Wealth Solutions, an FPI Approved Professional Practice™, has shown thought leadership in us winning the Financial Planning Practice of the Year in 2009. We strive to stay ahead and keep innovating always in the best interests of our clients. The client’s interests must stay at the centre of everything you do in your business,” says Adams.

Engaging with a financial planner

Because of all of the change in the industry, the role of the financial planner may be uncertain.

“The role of the planner will certainly continue to evolve further, but essentially not change. I believe we will continue to be more and more personally involved in our clients’ lives. Some predict a move to more DIY planning as a threat to our industry. That may well happen and we encourage financial education to assist people who cannot afford professional advice. However, we believe there will always be a need for our skills, and people are generally very willing to engage our services to avoid making any mistakes and to ensure they do not jeopardise their financial plan in any way,” says Adams.

No more one man shows

Because of the rising costs in the industry, there has been a lot of industry consolidation which has given more weight to the proverb of strength being in numbers. This will also apply to the financial planning industry.

“I feel that the current view now is that the days of the one-man show are numbered. When you look at the complexities involved in giving the best advice to clients, I am not sure that an adviser operating on his (or her) own with an assistant is able to do that effectively. It is simply too difficult from a compliance, practice management, client service, advice and succession planning perspective,” concludes Adams.