This week we profile the Marketplace Prize draw 1st prize winner Reine Clemow from Acquira Wealth Partners in Southport, Queensland. Reine has 49 client reviews with an average customer rating of 4.96 out of 5 stars. Reine has, in his own words a potentially “polarising” view regarding advice business valuations and advice fees, but we think it’s certainly more food for thought for an industry where previous norms are being exploded on what seems like a very regular basis...
1. Best thing about being a financial adviser?
We make a real difference in people’s lives because we take something that can be very complex and difficult to understand and make easy for clients to understand. This helps people to make better decisions about their financial future. I also love the diversity of clients we get to work with.
2. One thing you would like to see improved or changed in the industry?
I appreciate that this may be polarising, but the one thing I would like to see improved in the industry is a move away from businesses being valued on a multiple of recurring income. The problem with this model is that it drives businesses to focus on building funds under management and price their ongoing advice based on this. I don’t believe that this is a sustainable pricing model for fees and it’s often not aligned with the client’s best interest. This is a legacy issue with the industry and professional advice firms need to address how they price the work they do for their clients and whether that represents value to their clients, both in the first year and subsequent years. If this can be done successfully the advice firms will be a profitable and attractive business and the sale of the business would then be done by looking at EBIT.
3. The areas of finances or economy that worry your clients the most?
- The US/ China Trade War
- Possibility of a recession
- Interest rates being at 1% with lower rates forecast
4. What's the strangest question a client has ever asked you?
Could I look after their dog while they went away on holidays.
5. If you could get three things into consumers heads about what advisers do
or don't do what would they be?
a) The true value of an adviser lies not in their technical expertise but in helping people identify and solve the complexities in their financial lives.
b) Advisers do not watch and try to time investment markets - that is the job from investment professionals and fund managers. Advisers work with people to develop and implement plans that put people on their best financial path towards achieving their important aspirations.
c) Financial advisers are educators. They help you understand complex matters and make them easy to understand so you have greater confidence in your decisions.
6.How do you describe your job at BBQs?
I tell people that we are like financial architects. We design and help people build their financial life, so it includes all the things that matter to them most.
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