On the right side of the law

It may involve hard work and a lot of maintenance, especially in the initial stages, but a good relationship with a lawyer or solicitor can prove fruitful for many reasons.

Professional partnerships were once viewed solely as a source of referring business, but in the current financial services climate the benefits are growing.

Leggett Financial chief executive officer Phillip Volk believes the future for relationships between planners and law specialists is bright.

“With superannuation and investment law becoming so specialised we’ll see increasingly more specialists, and the real job in the future will be to integrate all that advice.”

Judy Schmidt, a financial planner at Leggett Financial, says it’s vital to have a relationship with a solicitor, particularly when dealing in areas like risk and estate planning.

“It’s only fair on the client that you’re across all their affairs, and a three-pronged relationship provides that consolidation,” Schmidt says.

And while an improved outcome for your client is paramount to a successful and growing practice, the professional partnership can also help directly grow your business.

Schmidt has found the lawyers, solicitors and even whole firms she has developed long-term relationships with not only refer clients, but often become clients themselves.

Volk agrees that while it takes a lot of work and time to build the trust with a partner, when you get the right people who really understand what you’re doing, you will get good referrals. And the process is only time-consuming in the initial stages, reducing as each party learns how the other works.

There are two ways to build trust, according to Volk. You can accelerate the trust process by taking someone else’s word for the person, or you can build trust by developing a relationship with them yourself.

“We spend a fair bit of time getting to know them as people. The ones we work best with are those who we have done some work for, as clients themselves. It’s very hard for them to become your advocate unless they understand intimately the service you provide.”

Schmidt agrees.

“It’s not just an overnight thing where we implement work for a client and they’re happy to do work with us. They need to see that we’ve got an ongoing relationship with the client and they need to see over time what we actually do.

“Similarly back to them, we need to be able to see the outcome and have the assurance and confidence in it as well. But once it’s built up, it’s a very cemented, strong relationship.”

The successful maintenance of that relationship depends on what each party expects from the other.

For example, as a planner, you could educate your partner’s staff or team on the use of self-managed super funds in estate planning. In return, you might receive access to telephone support from the law firm.

One thing you will certainly be expected to provide, however, is very good service to their clients.

“It’s generally a case of them having the trust in us so they’re happy to refer people on because that gives them a good name as well. They want confidence in knowing that you’re doing a good job,” Schmidt says.

And as with all relationships, communication is the key.

“Like a good marriage, if you keep the communication channels clear, and you trust each other, then irritations don’t really occur,” Volk says.

In keeping the relationship healthy, Volk says it is also important to appreciate and respect the other’s profession.

According toThe Argyle Partnership’s Peter Bobbin, the main area of irritation between lawyers and planners is treading on each others’ turf — the planner acting as a quasi lawyer, or the lawyer acting as a quasi planner.

“You need to know your limits, and know where your bread is buttered,” Bobbin says.

Speaking from the lawyer’s point of view, Bobbin says it is important to encourage clients to go back to the planner, and to stay away from expressing a view on financial matters.

And the reverse replies to planners. To stay on the good side of the law, stay on your side of the fence.