WHAT THE CONSULTANTS SAY: SEI On The Landscape After RDR

Brett Williams

SEI Wealth Platform

25 March 2014

This publication has approached a raft of consultants operating in the wealth management sector to give their views about a range of challenges and opportunities for the industry in different parts of the world. A number of articles will be released in these pages in the coming weeks and we hope readers find them stimulating. The articles have been sought by this publication and also by Bruce Weatherill, of Weatherill Consulting, and also chairman of ClearView Financial Media, publisher of this news service.

This article is by Brett Williams, UK managing director, SEI Wealth Platform.

Success
As the dust settles across the advisory sector post the first phase of RDR (Retail Distribution Review), it is already clear that a new kind of financial firm is emerging and making its mark. With the regulator pushing for more suitable, effective and competent advice, there has been a significant reduction in the number of advisers in the financial services industry. The post-RDR firm has evolved and there are a number of key players shaping the industry. These firms redefine the way they approach business and we recognise a few key, common qualities emerging as signifiers of success. The qualities discussed below are what I admire in our clients and partners.

Track record
Historically, the market has often considered a firm’s reputation to be a leading indication of its financial success. However, wealth management is an industry in transition and it is our belief that the firms that will experience consistent growth in the future will be those that put significant focus on servicing their clients in a consistent and positive way. As RDR threatened to harm the profitability of independent wealth advisors, those that have been successful place an emphasis on client service and delivering bespoke, tailored solutions that solve specific problems, rather than simply providing a generic product or service.

Focus for growth
Growth is clearly an objective for all firms, but I am seeing certain businesses approach growth objectives in a different way. Successful firms in the new era of financial services focus on innovating new business propositions in a way that achieves robust and sustainable growth. After RDR, financial firms that want to succeed understand the importance of embracing new markets, a new breed of clients and are typified by their doggedness to find opportunities for profitable growth even in the most unlikely of places.

I’ve always enjoyed and looked forward to working with true entrepreneurs, namely, those who are looking to effect positive change and evolution in how we do business. It is something I see as key to any successful firm: determination to embrace change, create, grow and expand new ideas, and find new ways of fulfilling client needs.

Commitment to transform
Finally, all the qualities above are underpinned by a firm’s commitment to transform and evolve its business model. With a lot of disruption in the financial sector at present, the only way a firm can future-proof its business model is by creating an environment that is prepared for change. Success and growth are most available to those in the industry who embrace change and are driven to capitalise on future opportunities.

Though the financial industry has changed at a startling pace over the past few years, we’ve been excited at the developments in many firms, young and old, as they ensure their business models are relevant and successful. The post-RDR landscape has inspired a new wave of attitudes towards growth and client service amongst independent wealth advisors, which I find encouraging and exciting.