Do your clients lack confidence in financial services? Here’s how holistic planning can help

The world of finance is varied and ever-progressing – so it’s understandable that some consumers don’t fully trust it.

Indeed, the reputation of greedy Wall Street bankers and success-hungry traders leads many to believe that financial services professionals are only after profits, with no interest in consumer care.

This is sadly reflected in a recent Financial Conduct Authority (FCA) survey of 19,000 people, published by MoneyAge, which revealed that:

• Less than half of adults have confidence in UK financial services
• Only 36% of people agreed that “most financial firms are honest and transparent in the way they treat them”.

In contrast to many consumers’ understandably outdated view of things, we’re now experiencing a “new wave” of independent financial planning that places clients at the heart of the conversation.

Keep reading to find out the ways that holistic financial planning is changing how financial services operate in the UK, and what this could mean for your clients going forward.

The new Consumer Duty regulations require financial planners to prioritise client outcomes

You might have read about Consumer Duty, a new set of FCA regulations, in recent months.

Introduced on 31 July 2023, Consumer Duty marks a sea change in the way that independent financial advisers (IFAs) operate. The regulations require that IFAs:

• Communicate with clients in an easy to understand, appropriate and helpful way
• Make clients aware of how their money is being handled, and why, at every stage of planning and implementation
• Demonstrate to the FCA and to clients that their services are of fair value
• Ensure that consumers get support when they need it.

To meet these standards, IFAs must:

• Complete FCA-issues questionnaires and provide additional evidence to demonstrate fair value
• Be able to evidence their levels of communication with clients and make improvements where needed.

Consumer Duty represents more than just a new set of regulations for financial services – it is a marked shift in our culture. While we’ve always prioritised client outcomes here at WKM, Consumer Duty has raised the bar and insists that no client is left feeling unattended to or confused.

It is our hope as a firm that, as Consumer Duty continues to filter through our profession, financial planners begin to earn the trust of more consumers and clients as a result.

Holistic financial planning sees money as the vehicle, not the driver

If you have clients who would benefit from financial planning but feel mistrustful of the process, it could be helpful to discuss holistic planning solutions with them.

Indeed, holistic financial planning describes a goals-oriented approach, replacing the traditionally product-focused way that many planners and advisers used to work.

Imagine your client’s life as a car on the road. Older, archaic forms of financial advice might imagine the client as the passenger in the car, with their wealth sitting behind the wheel. Conversations might have centred solely around figures, not how the client actually wants to spend the money they make.

Today’s financial planners are a little more forward-thinking: the client is behind the wheel, and the vehicle they’re sitting in represents the money they earn. With the help of their financial planner, your client can drive confidently towards their goals, knowing they have the tools and skills they need to make it through their journey safely.

In an initial meeting, a holistic financial planner might ask your client about:

• When they’d like to retire
• Items on their bucket list, and which ones are the most important
• How they’d like to help their children or grandchildren, such as helping to pay for a wedding or providing funds for their first home.

Painting a picture of who your client is as a person, and what they want to achieve, can then help a financial planner to implement bespoke solutions that help them follow their path.

Consulting a financial planner who works in this way can empower your client to take the trip, set the retirement date, or provide the funds to the next generation that they’ve always dreamed of – without the stress of wondering if it’s a “sensible” choice.

At WKM Wealth, we offer independent, holistic advice that puts clients first

If what you’ve read here feels very different to your or your clients’ impressions of “financial services”, good – that means we’re doing our job!

Here at WKM Wealth, our ethos centres around independent, holistic advice that always puts our clients first. If your clients could benefit from this kind of financial planning, you’re in the right place.

For a conversation about how holistic financial planning could benefit your clients, email info@wkmwealth.co.uk or call 0116 403 0138.

Please note

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.