How to develop professional connections

There has never been a better time to improve relationships with accountants and solicitors, writes Maria Merricks.

As RDR approaches, there has never been a better time for advisers to improve their professional connections.

The regulatory shake-up means IFAs will have to adhere to strict professional standards with the aim of aligning with solicitors and accountants.

At the same time, solicitors and accountants are experiencing regulatory changes of their own with new legislation reinforcing their need for esteemed IFA contacts.
A fruitful relationship with solicitors and accountants provides a golden opportunity to attract high value clients and boost business but, unfortunately, the fear of the chase deters many advisers.

Members of all professions are also wary of referrals, with many apprehensive about the quality of advice their clients will receive, says Ian Muirhead, managing director of Solicitors Independent Financial Advisers (SIFA).

With this in mind, advisory firms need to ensure they are in the best shape possible and a perfect starting point is a research paper published last year by JP Morgan.
Entitled Professional Connections: Creating opportunities between IFAs and other advisory professionals, the paper examines the attributes solicitors and accountants look for.

Shaping up

Qualifications ranks highly in the list of considerations. Chartered and Certified are the preferred designations and firms at this level will have something of an advantage, says Steve Billingham, director of Steve Billingham Consulting.

“Solicitors and accountants are obviously well qualified and so, unsurprisingly, expect financial planners and advisers to be well qualified themselves,” he says.
The paper also says most professionals will look for a firm with an excellent local profile and reputation. Billingham suggests glowing testimonials, compelling case studies, positive media exposure or community involvement will help.

He says advisers can play an active role in the local business community through vehicles such as the local Chamber of Trade, Chamber of Commerce or by getting involved with local charities.

However, he warns to only get involved for the right reasons: “Do not just join to make up the numbers. Join to play an active role and to make a difference; that way you can build your credibility and reputation.”

Importantly, solicitors and accountants look for a firm with a clear proposition and area of expertise. Muirhead says too many IFAs are not distinguished enough and, bearing in mind solicitors specialise, it is important IFAs match those specialisms:

“If you look at IFA websites they are often very similar and all say the same thing: they do pensions, investments, and mortgages and you cannot tell one from the other,” he says.

Billingham adds many will be sceptical of advisers who claim to be experts in all areas.

“Emphasise your specialisms, particularly where they are relevant to high value areas of advice such as trustee investment.”

Mastering the approach

A firm ticking all of these boxes will be an attractive candidate for solicitors and accountants. However, Billingham notes most professionals are passive, meaning the adviser will have to make the first move.

With this in mind, the next step is mastering the approach.

Muirhead says this is the hurdle many advisers can fall at, especially if they opt for the cold-calling or mailing technique. He warns this approach will not be taken seriously and could instead leave a black mark against a firm’s name.

He suggests approaching accountants and solicitors on a similar professional wavelength. For example, most solicitors are members of the Society of Trust and Estate Practitioners (STEP) and so one of the best ways of getting into the professional community is to take the STEP financial services exam:

“You will be an associate member of STEP and go to their meetings and hobnob with local solicitors who are doing that sort of work. This is one of the best ways of getting through and establishing a relationship,” he says.

Billingham suggests a step by step strategy:

Target – be clear about the firms you want to target whether that is by size, location, specialisms or age of the partners.

Approach – there are many ways you might make your approach such as networking; direct one to one; seminars on relevant topics; webinars or reciprocal speaking opportunities.

Nurture – allocate time to nurturing the relationship moving it through the know, like and trust phases, building your credibility one step at a time.

Follow-up – keeping in mind no professional will refer clients after just one meeting, create a robust follow-up process for keeping in touch once contact is established. Subscribe them to your newsletter; connect with them on Twitter or LinkedIn. Find excuses to keep them informed but do not overwhelm them.

Billingham says it is crucial to take an approach that is both professional and structured and to think carefully about the content of each stage and the areas you need to cover:

“There’s an enormous amount to think about. Initially it needs careful, detailed planning and fine tuning as you gain experience and feedback.”

As a final thought, Muirhead warns advisers not to consider referral fees when talking to solicitors. He explains the Solicitors Regulatory Authority has clamped down on the receipt of any remuneration and it is simply not allowed anymore.

He says: “If a solicitor receives any money from someone other than the client as a result from working for the client, that money belongs to the client.”