Intermediaries who want to stay in the financial advisory sector and maintain their independent stat...
Intermediaries who want to stay in the financial advisory sector and maintain their independent status might be able to do so with the help of a Southampton-based firm which shows IFAs how to encourage retainer fees from corporate and individual clients.
Grosvenor Group, which started out as an IFA firm in 1985, now runs a series of workshops around the country called Corporate Breakthrough Solution (CBS, to show intermediaries how to develop business with corporate clients and establish a retainer with that client before a single financial product is even discussed.
Those advisers who initially attended corporate business sessions have found they have been able to apply the same concepts to individuals, because the workshops have given IFAs the confidence to ask for a £300 fee for simply doing a client's pensions valuation.
The key to success, says founder and head of the Grosvenor Group, Paul Cadde, is IFAs need to place themselves in a position where all financial and tax planning decisions go through him, including liaisons with the company's accountant, to ensure financial decisions are coordinated.
This is exactly what Cadde did when he began developing corporate business for his own IFA firm - at the time charging retainers of £15 per month.
In some cases, Grosvenor now earns fees from a single company of £4000 once they sign up, followed by a regular monthly retainer of £400.
IFAs attending the CBS workshops get the first session free, followed by sessions of the Corporate Breakthrough Programme (CBP) every three months.
But such is the success of these roadshows that Grosvenor is being encouraged by the 220 IFAs who previously attended to charge a fee for giving these initial presentations because so many intermediaries have seen their profits improve after attending.
"Getting individuals, never mind corporate clients, to pay fees is a shift in thinking. The whole insurance industry teaches us that we have to something for nothing, but that's not the case," says Cadde.
"But I've seen situations where advisers have been contacted by a client's lawyer - because they are getting divorced - asking for financial data which they would normally not get paid for, and the lawyer has paid the fee without question, he adds."
Initial workshops sessions, supported by Scottish Mutual, are scheduled in Manchester for Thursday 27th June, Leeds in 24th July and another first workshop is scheduled for September 5 although location is yet to be confirmed.
For more details, contact Grosvenor's Corporate Breakthrough Solutions division on 02380 611666 or email John Kerr on [email protected]
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