Three steps to surviving volatility
Rob Thomas
Advisers are now seeking advice for themselves more than in the past, according to financial services group AXA, which claimed the best way to survive turbulent markets is with quality research and informed licensee support.
AXA head of research and technical Robert Thomas urged advisers against hiding in volatile markets and recommended a strategy of communication and portfolio diversification to differentiate their services.
“Periods of market volatility can be unsettling for clients as well as advisers.
“So it is especially crucial that research teams are experienced and, most importantly, accessible to advisers,” he said.
In a period of instability, advisers should draw on three fundamental messages: keep communicating with clients, ensure portfolios are diversified at three levels and remember that the steps for providing quality advice in volatile periods are no different to other times.
According to Thomas, those steps include using the right tax strategy, ensuring correct asset allocation and regular rebalancing back to benchmarks, using leverage for selected clients and considering the use of protected products.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
