Douglas Adams, an English writer, humourist and dramatist once said, “To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.”
As an investment planner and advisor, it is imperative to distinguish yourself from the crowd by standing for honest and ethical advice. This is because investors, in general, are fed up of the rampant mis-selling tactics.
Trust can only be built on the foundation of integrity and perhaps, that’s the way to carve a niche and grow in the financial advisory business.
Unfortunately, unlike doctors in the medical profession, there is no oath taking or swearing-in ceremony for investment advisors and if there is one introduced in the future, it would have to be adhered to wholeheartedly.
Investors expect honesty, confidentiality and transparency when they approach those financial advisors who follow the best disclosure norms.. Furthermore, they expect financial advisors to understand their needs so they can receive ‘personalized’ prudent advice.
Imagine going to a doctor who gives you a prescription without taking cognizance of your physiology and medical history, the results would be disastrous, right?
So, adopt the best business practices and high fiduciary standards. And one way to do it is through ethical selling. Ethical selling implies suggesting ideal asset allocation choice for an investor based on his risk appetite and age. This includes asking right set of questions, listening to clients, examining his financial situation and offering a solution that your clients can understand.
However, this is not as simple as it sounds. Advisors would need excellent communication and listening skills. Also, you need to probe clients as at times, they do not open up. You will have to provide them solution in clear and logical way. To help IFAs hone such skills, we have come out with a platform called Quantum Cosmos to give insights on ethical selling to establish trust among clients.
Jimmy Patel is the CEO of Quantum Mutual Fund.
The views expressed in this article are solely of the author and do not necessarily reflect the views of Cafemutual.