The significance of segmentation

A recent Skandia survey showed only 27% of advisers were segmenting their client base according to client need. Why do you think this is? We are talking about the move from the old world of advice towards the new. In the old world, the providers did a lot for the advisers in terms of providing inbuilt commissions that effectively dictated what an adviser could charge a client. Many advisers have found this led to a degree of cross subsidisation whereby wealthier clients effectively subsidised less wealthy ones. In the new order of things, advisers cannot allow this to happen if they want...