MiFID II– Managing Clients Trust with Changes
December 17, 2017

This series of blogs are looking at the changes resulting in the MiFID II which is coming into effect on 3rd January 2018. For more information on the changes, click here. The last blog introduced the general changes of the MiFID II which will affect financial advisers. We also introduced how marketing can be used in presenting the new breakdown of proposed costs and charges.

In this blog we are going to look at how financial advisers, such as yourself, can benefit from building a culture of trust with your clients and how to communicate the proposed costs and charges most effectively while ensuring you still offer the best service possible to your clients. We are going to outline pointers to help build trust with your clients during the changes.

Reassure your clients

The news of changes in legislation is likely to make your clients concerned about their financial security. Try putting yourself in their shoes and thinking what it is you would want to be told if you felt the prospect of your finances and future plans were unknown. The chances are you would want someone who is confident, capable, reassuring and proactive on your side. Think about how you can provide this for your clients.

Having possibly heard of potentially big changes which are likely to affect their financial plans it is essential that you reassure your clients. You need to warn them as soon as possible of the changes that are taking place so they feel prepared. You will also need to explain the extent to which the changes will affect them.

Deliver on promises

Be clear on what you can promise to your clients. Assure them of the service which you will deliver and make sure you work through any changes as smoothly as possible. Look at what is necessary to deliver on your promises. Clients are likely to be very anxious to be informed of any changes so it is essential that if any changes take place that any stress is kept to a minimum. Clients will therefore want to know that their finances are being handled as professionally and efficiently as possible. Therefore, you might find it useful to refer to due diligence policies. You need to be sure that your clients are confidently reassured without over stating promises that you cannot deliver.

The promises that you deliver to your clients can be both quantitative and qualitative. Quantitative are tangible and costed and in some ways more easily measured but what may be more important for your clients are the qualitative aspects of the service. Qualitative aspects consider aspects which add value through knowledge and perception.

Ultimately, you are aiming to develop a culture of trust with your clients – this is essential for your working relationship. The final blog in the series is designed to give tips in communicating these changes to your clients and helping them to understand.