“However, some clients are happy to pay an ongoing fee for access to an adviser, even if they don’t use it,” she says. “They want peace of mind and the option to speak to the adviser if they need to. They understand how much that facility costs, and are prepared to pay for it because they can sleep easy at night.
“It’s like insurance. They’ve paid for peace of mind, but haven’t had to use it. The adviser firm’s records will, of course, need to evidence that access to an adviser was of genuine interest to the client, and the cost of that access was clearly disclosed.
“However, where a client never makes use of that facility, there should be a review of the service level at the annual review, just to make sure the client understands what they are paying for, and check that they are still happy with the service level.”
Lawrence at Bovill likewise describes it as valid for firms, as part of value assessments, to survey clients for feedback about the service they are receiving.
“That information is useful, but it’s only useful as part of a broader analysis...most consumers aren't well placed to self-determine whether they're getting fair value or not.
“Indeed, there’s behavioural studies that suggest that once you start paying for something, your willingness then to say, ‘This thing I've paid a lot of money for isn't any good’, is less. You're a bit captured in that space.
“And it's not easy for people to shop around...most firms don't publish their charges in a way that’s accessible to [prospective] clients.”
Another way to evidence value is record-keeping, says Bruns at SimplyBiz. “The peace of mind of having an adviser to get in touch with at any point throughout the year will often form part of the service clients are paying for, and the value of this is difficult to quantify.
“This is particularly relevant in periods of volatility and the current epidemic of fraud and scams, whereby an adviser can be on hand if required to give a reassuring word to a client. This can be of immense value, as we know that bad decisions are often very difficult to reverse.
“One way for firms to evidence this value is to seek feedback from clients, and also to keep good quality records around discussions had with clients throughout the year. The importance of having these ‘notes and quotes’ on file cannot be understated.”
