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For financial advisors who are planning to switch their clients to a fee based platform or process, here is one strategy that will help you build a process for getting there faster. Build two practices. One practice called the ideal business practice or new practice, and one called the old practice or non-ideal clients. The ideal practice which has clients that are fee based and already are fully aware of your process, understand your value and are an ideal win-win client (they are happy with your revenue and services and they are happy to pay the fees for your services which are fully transparent). If you have no clients under this new business, then create the new business process and create your value promise. Under the non-ideal or o...

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The only constant in the financial industry is change. Adapting to change is the second constant. With the regulatory changes and CRM2 in Canada, investors in the future, will see the cost of advice and fees in dollar terms on their statements. You may not be there to take all of the calls, questions and emails regarding fees and cost. You will need to have a well scripted process to explain fees, and the value people receive. But what if the client asks one of your team members, or staff? How will they answer the question “What are these fees and how does it work?” More importantly, what can your staff say, under your regulatory and compliance guidelines? I would encourage you to check with your branch manager and firm on wh...

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For financial advisors who are planning to switch their clients to a fee based platform or process, here is one strategy that will help you build a process for getting there faster. Build two practices. One practice called the new business practice, which has clients that are fee based and already are fully aware of your process, understand your value and are an ideal win-win client (they are happy with your revenue and services and they are happy to pay the fees for your services which are fully transparent). If you have no clients under this new business, then create the new business process and your value proposition. Once you create it, you can test it on clients and build your process of moving clients from your old business model t...

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With regulatory change, comes industry change. With industry change comes consumer change. Will consumers change when they fully understand the total costs of financial advice. We know that not all consumers do not fully understand their total cost of advice. Once consumers change, will they want more? Will they want something different? What does their body language tell you when you discuss transparency and fees. Their body language may give you the answers. In other countries such as Australia, South Africa, The United Kingdom and the United States, something different may mean switching clients into a fee based account. A new type of account that means change. Simply offering the alternative and letting the consumer decide is the fir...

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