There is a noted disconnect between advisers and clients regarding what constitutes value in financial advice.
- A recent study reveals a discrepancy in the perceived importance of investment performance between clients and their advisers.
- 45% of advised clients view investment performance as the most crucial element of value for money.
- Only 24% of financial advisers share the same view, highlighting a significant misalignment.
- Despite differences, advisers and clients do find agreement on other core aspects of choosing financial advice.
The divergence in views concerning the value of financial advice is becoming increasingly apparent. A recent report from Royal London uncovers a significant misalignment between what clients and advisers perceive as valuable. The survey, conducted by consultancy The Lang Cat, encompassed 170 participants from an adviser research panel. This discrepancy primarily revolves around the importance placed on investment performance.
While a substantial 45% of clients consider investment performance to be the most important factor in determining value for money, only 24% of financial advisers concur with this assessment. This suggests that advisers might underestimate or misinterpret the priorities of their clients when offering financial advice.
Investment performance is a critical indicator for clients seeking reassurance about the effectiveness and success of their investment strategies. Clients tend to prioritise tangible results that reflect the progress of their financial portfolios. This disparity in perception may lead to potential dissatisfaction or miscommunication over what clients hope to achieve from financial guidance.
Despite this gap in priorities, the study also found areas of consensus between clients and advisers. Both agree on certain overarching factors that influence the choice of financial advice. This suggests that while investment performance holds varying degrees of importance, there are fundamental aspects that both parties consider when establishing a valuable advisory relationship.
Bridging the gap in understanding between advisers and clients is crucial for facilitating effective financial advice.
