Behavioural coaching is 'cornerstone' of effective advice

In the labyrinth of the financial advice industry, where decisions are a crossroad, behavioural coaching should play a bigger role in the advice process, according to Embark Investments chief executive Barry MacLennan. "Emotion-driven decision-making is the Achilles' heel of many clients," MacLennan says. "As human beings, we are wired with cognitive biases. The key is to equip clients with tools to resist the siren call of short-term emotions." Understanding the impact of behavioural biases MacLennan tells Professional Adviser that emotional decision-making impacts investment outco...