I’m back from beautiful South Wales and the 2010 IFP Conference, just in time to make way for a few more American golf enthusiasts. So what was taken from the conference this year? For me it was a focus on ways advisers will be successful in a rapidly changing industry. Interestingly enough, conversations usually started and ended with process.
Charlie Ellis and Mark Tibergien started the 2
nd day with challenges to advisers. Mr. Ellis posed a compelling argument that advisers should be more focused on risk management than playing a loser’s game of trying to beat the market. A nearly impossible feat given the players in the game (institutional investors) and human nature (emotion).
Mr. Tibergien challenged advisers to grow their businesses efficiently by implementing smart, scalable processes. As an advice firm grows, people and process (technology for example) are keys to ensuring a profitable future.
It was incredibly refreshing to hear a business focused discussion about ways to succeed as opposed to the many ways the FSA is supposedly trying to ruin the advice business. Whether you believe that or not (contrary to what some Lib Dems think) we can all agree IFAs have a critical place in the future of personal finance in the UK.
I was also fortunate to hear Tim Hale speak about business practice and advice process, but from a much different angle – defending yourself in a court of law. He also stressed the need for a robust, consistent investment process and the lack of this as one of the most common weaknesses of an IFA firm. Without a sound process, the tactical operations of a firm will struggle as well – fund selection, use of asset classes and portfolio construction.
If you’ve read any of my posts before you probably know why I’m taking note of these presentations. I’ve had the process conversation many times with our clients so it was fantastic to hear different approaches and opinions. I even wrote about earlier this month! Every single presentation I attended at the IFP Conference reiterated the need for a good process with technology as the delivery mechanism so we are very excited to be in position to provide a key piece of this to the IFA community. For help implementing a process send me an email or if you have something to share, please do so in the comments below.