Categories: Industry
Tags:adviser firms| debt management
A Lancashire IFA has teamed up with a local debt management firm to offer financial planning help to clients struggling with cash-flow.
With the economic and unemployment crisis calling time on wealth creation, David Curley felt what most people currently need is a back to basics approach.
Earlier this year, he left a general insurance brokerage's life arm to set up the IFA practice with Blackburn-based Spencer Hayes.
Initially, the firm could only offer mortgage and life cover services, but this week it has won FSA permission to advise on pensions and investments as well.
The company has now changed its name to Spencer Hayes Financial Services Ltd from Spencer Hayes Mortgage Services to reflect its evolution.
"With so many people getting into debt through no fault of their own, wealth preservation rather than wealth creation at this time is the important part our work, and then education and then forward planning," Curley says.
"Clients who seek help with their debt, have probably cancelled all their life and general insurance policies and they do not know what to do with their pensions. We can deal with all these issues," he adds.
For example, he says a client over the age of 50 with credit card debts may be able to raise sufficient funds from a pension scheme to clear the debt at a reduced cost.
Hence the importance of looking at the big picture, he argues, and having the tools to deal with debt as well as asset management, which he claims most advisers do not have.
"The problem is many people are promoting their services as holistic but in point of fact they are only transactional and are looking at only one or two items of a client's assets," he says.
| Comment | Adviser sets up IFA practice in debt management firm |
Related articles
From IFAonline
Categories
Tags
Comments
All-Weather Financial Advisors
Some years ago at the annual IFP conference I ran a session with fellow member and insolvency practitioner, Kenneth Wright. We introduced the concept of being ALL-WEATHER financial advisors, not just a good-weather ones. We tried to show how important it was to deal with the client's DEBT portfolio as well as his ASSET portfolio since more problems come in that segment where most planners have little experience. Hence, they are UNABLE to give truly holistic, integrated or comprehensive advice and service. Be honest! How many of you reading this blog know how to advise on creditor deferral, cash flow crises, turnarounds, debt reconstruction and debt management or even IVAs and CVAs? With our current economic and job crisis in the UK (which will have fallout for years to come) how much value can we truly give to clients if all we know is how to advise on long terms goals (pensions, school fees), risk management (insurance), mortgages, asset allocation, etc? The advice given by many planners is safe, long term and looks good on paper and has a long delivery date when the adviser may not even be around. Conversely, debt and cash flow management is a SHORT TERM (even emergency) service and in great need within the client lists of all the bloggers here I believe. But unless planners promote their 'holistic' services to INCLUDE a strong (and competence based) section on DEBT management as well as ASSET management we are misrepresenting ourselves publicly when we say 'holistic'. Without proper training and resources planners can do more harm than good when clients face these problems - by omission rather than commission (the other type). I may have upset some of you who live on the asset side of the client's life but having been a fee-based ALL-WEATHER financial planner for many years this subject is close to my and my clients' hearts!!! Let me encourage you to learn this side of the business. You will establish loyalties and client bonding like you've never had before as well as powerful testimonials to help you build your business. IF you want some practice guidance and sources of info on this you can email me at jon@jongolding.com.
Posted by: Jon Golding
Related articles
Most Read
Audio / Visual
With the industry's biggest fund managers, IFAonline welcomes you to the media centre.
Ensure you never miss another story by following IFAonline regularly updated news feed on Twitter.
Events
Poll
|
|
Related Information
Job search
Adviser Careers will open the right investment career path for you. Search hundreds of vacancies on www.advisercareers.com now
In Focus
Newcastle IS , a dedicated service for Independent Financial Advisers and intermediary networks, has launched a new market leading range of Fixed Rate Bonds offering rates of up to 3.25% Gross/AER plus generous upfront commission rates for IFAs.
Viewpoints
For investment professionals only. Not approved for use with customers.
sponsored by
Good News for Debt Advice Industry
Its good to see the rounded and holistic approach to finances and debt issues being taken by another company. We have been established since 2008 and offer clients the spectrum of advice to ensure they cover all avenues to secure the best solution for them. As one of the biggest debt management firms in the North East our financial services dividsion is critical at eveyr stage of our advice process. Its sometimes the case that we underestimate our own levels of service until we read such stories in the news of people following our lead. Well done to Spencer Hayes and David Curley.
Posted by: David Wilson