Unfortunately, not every client-advisor relationship can be a great one. Gino Saggiomo, CFP, a 14-year MDRT member from Fortitude Valley, Queensland, Australia, says transitioning the client to a different advisor, in addition to being in the best interest of both of you, may also be a way to also stay compliant with corresponding regulation.
“If either you’re not committed to the client or the client’s not committed to you, then one could argue you’re taking compensation from the client under false pretenses,” he said. “Are you really willing to do whatever it takes to help that client get to where they want to go? If the fit isn’t there, it’s important to have that honest conversation and acknowledge it. But if you genuinely want this person to get help in the future, you help transition them to the right advisor, put together a client brief for the new advisor, wish them the best and hope they achieve everything they want.
“The other point to make in an environment now where regulations are at the forefront of a lot of the conversations we have with clients is you might feel you’ve got a great relationship with the client now. But if you’re not adding value, there is potential for compliance and regulatory risk into the future, so you’re better off just sort of nipping it in the bud and saying, ‘I just don’t think there’s a proper relationship for us.’ It’s as much for the client as it is for your own longevity in the industry.”
Hear more in the MDRT Podcast.