by Andrew Pereira
The global stock markets have reacted sharply to the COVID-19 pandemic, reflecting the unprecedented nature of this international threat. We can't know the full impact of the pandemic. We can only follow the advice of the government and experts to the letter while doing what we can to continue to meet the responsibilities of our home and work lives.
So, as financial advisers, what are our responsibilities at work, specifically to our clients? There are a number of clear demands for us to meet from clients as well as definite actions we can take to help keep client relationships healthy and positive throughout this uncertainty. Here are my tips.
Taking a proactive approach doesn't just refer to your business response to the situation, it also applies to your client relationships. Getting on the front foot and contacting each of your clients can go a long way to reassuring them, settling their nerves and reminding them that we’ve planned for events like this and they will be okay. Letting clients come to you with their queries or not responding quickly enough to their questions will only increase their anxieties further.
In times of uncertainty, clients sometimes want to know what is happening in terms of market activity. The only answer as financial planners is to communicate clearly that markets do what they do and having a well-diversified portfolio is the best answer. Remove jargon and technical terms whenever possible to get your message across to clients. At times of increased pressure it can be easy for a jargon-heavy piece of communications to slip through the net, but it's worth taking the time to make sure you're being clear.
Whatever the nature of your advice it needs to be delivered on a regular basis or whenever there has been a significant change in the client's circumstances. The more your clients get used to regular communication, the more confidence you'll inspire and the more they will relax. In the immediate aftermath of COVID-19 lockdown in the UK, we issued communications to clients every 48 hours and called each of our clients individually to reassure and check in.
When you communicate with clients, be open and transparent about what you are doing as their adviser, and how your firm is responding to events. Showing them how you have prepared for such eventualities in their portfolios and how the firm will respond is crucial. Remind them of your processes and stick to the facts.
As technology continues to expand, a common question for us has been whether it is bringing us closer together or driving us further apart. These past few weeks have shown us tech's power to unite.
We are lucky that the digital revolution has provided us with so many innovative ways to communicate and keep in contact. At Progeny we have installed our own video conferencing platform for both internal meetings and client webcasts.
I think it's probably safe to say that this period will change the way we provide financial advice forever. It has certainly been the catalyst for us to accelerate the work we're doing in delivering advice in a new, more convenient and effective way for clients.
We are using Progeny's client portal to bring together a client's financial life and associated documentation together in one place. We employ various systems to consolidate multiple sources of data and employ Docusign to remove the need for wet signatures.
As advisers, the way we work is built around relationships. Everyone is different so make sure that each one of your clients receives that personal level of attention they expect from you.
Tailored counsel and bespoke advice are our calling card. They have been more important than ever during the events of the past few weeks - and they will continue to be for the foreseeable future.
Andrew Pereira is the Managing Director, Wealth, at Progeny.
