The central role of the financial advisor has never been more important. But in a complex market, how do you keep things simple?

There’s a famous old saying in the legal profession: ‘the man who represents himself in court has a fool for a client’. As The Telegraph reports, too many people who try this have simply watched too much television. They tend to triumphantly say ‘aha!’ after they’ve received an answer to a question, for example. It doesn’t go down well.

Financial planning is a lot like law. It’s usually best to call in an expert. Financial planners and advisors are essential intermediaries between institutions and consumers. It’s their knowledge that aligns needs with solutions.

So, what makes for a good advisor? The right qualifications, honed skills, and sufficient experience. All three need constant attention; the best in the business always stay up-to-date with the business. Admittedly, this isn’t easy. The market is complex, and it’s impossible to fully understand all the products of every provider. That’s why the smarter planners select the type of client they’d prefer to work with, and then form an association with two or three institutions to provide the best overall offering to those clients. This allows for a comprehensive point of view in a specialist discipline.

There are many advantages to this approach. For example, there’s the ability to quickly respond to changes in compliance and remuneration. Importantly, the advisor also doesn’t put all those eggs into one basket.

“ The smarter planners select the type of client they’d prefer to work with.”

Then it’s a matter of getting the product mix right, as well as developing fair fees and cost structures. The aim is to create trust; the basis for a successful long-term relationship. The days of insurance salesmen are over!

More and more, consumers are wanting to put their faith in an expert; someone who will match person with product. What they’re looking for, in fact, is a real ‘aha’ moment.