In this video, several financial advisers discuss what issues might affect them this year.
From the challenges of implementing new regulation such as MiFID II and GDPR, to advising clients what to do faced with challenging market conditions.
It has not been easy implementing MiFID II and GDPR, Parasols, director of operations, Jo Campbell says: “[MiFID II and GDPR] has created challenges and it has been poorly communicated, and a lot of pressure has been piled on us. We launched a service to assist our clients with this new regulation.”
Sarat Allan-Davey, financial adviser at Heron House agrees with Campbell, she says: “It has taken us an enormous amount of time for us to comply with MiFID II and the new GDPR rules. They have been enormous events which have been poorly communicated.”
Navigating your way around new regulation is not the only issue facing advisers and their clients, market volatility is another element which will be difficult to ignore.
Advising through market events
James Bampton, head of intermediary distribution, Architas says: “The volatility we see in the current market situation does cause some clients concern. For instance, some have been asking their advisers about Brexit.
“Our job and the adviser’s job is to help the client ‘see through the noise’ and stay invested over the long-term.”
Bampton’s piece of advice to people is to focus on their financial planning needs and “not get distracted in the media excitement about the latest disaster.”
Financial planning versus financial advice
Nick Bamford, financial adviser at Informed Choice, outlines the differences between financial planning and financial advice in 2019: “We think financial planning is the strategic part of the person linking up with their wealth and their life ambitions, and advice is the tactical response that goes with it. As an industry and a profession we need to promote that more.”
Not only is there a distinction between financial planning and financial advice, but the way advice is being delivered by the adviser to the client in 2019 has changed.
Parasol’s Campbell says: “Everybody is now doing more cash flow, financial planning and ‘holistic planning’ and that can only be good for the client.”
Informed Choice’s Bamford says his biggest challenge is putting a financial plan together: “Our biggest challenge is getting hold of data from product providers and pension schemes and it takes months for us to bring that data together.”