Building trust through a Royal Commission

Introduction

In December 2017 the Commonwealth of Australia established a Royal Commission into misconduct in the Banking, Superannuation and Financial Services Industry. AMP, a conservative 169-year-old brand has felt the backlash with a drop in share price as well as resignations from their Management Board (CEO and Chairman).

Constancy Wealth is a Brisbane financial management firm licensed through AMP Financial Planning as an Authorised Representatives. We are a separate business operating under strict legal obligations which include the requirement to act in the best interests of our clients at all times

All information regarding the Royal Commission including live recordings of the hearings can be found on the government website so you can watch or read first-hand what information has come to light. AMP maintains regular communications throughout the proceedings with daily updates to advisors and public available responses on their website.

Being pro-active

In a world with too much information it is unrealistic that people will read any of this. All our clients know is their money is administered by a company being investigated, has suffered a drop-in share price, resignations from top management and making the news for the wrong reasons. So what did I do as their financial advisor? I had three options.

1). Do nothing.

2).Wait for further instructions or client letter templates from AMP. Or,

3).Take the proactive approach, pick up the phone and ring every one of my clients.

The speed of change is so fast which is why every industry experiences times of intense scrutiny. It is needed to keep businesses honest, appropriate and relevant to the modern consumer. This scrutiny provides pressure to industries pushing out stake holders who do not want to participate and opportunity for those who do. I love opportunity in the face of struggle so I chose to use the royal commission as a reason to pick up the phone, get in touch with my clients and answer any questions they may have.

I explained to my clients that I had been keeping up to date with the royal commission, their portfolios and advice strategies. I explained the relationship between myself and AMP as well as my duty of care to them as their financial planner. I also answered any questions they had and asked them about their future financial goals.

What I learnt

I found that most people were not concerned even concerned about the royal commission because they were too busy living their lives. They already knew I would continue to manage their finances to the best of my ability and make recommendations as required.

It was such a welcomed response hearing that no trust had been lost and I got great satisfaction seeing the strength of our relationships first hand. I did not try to sell anything or need to assure people that everything was going to be OK but they appreciated the pro-active approach regardless. These conversations even lead to further advice opportunities with existing clients.

Key takeaways

The key takeaway as a business owner is to always be looking for opportunities and taking action where possible to deliver credibility, reliability, intimacy and low self-orientation also known as the trust equation. By doing this you have done everything you can to deliver the best possibly products and services which is exactly what I will continue to do.

The key takeaway for consumers is to voice your concerns and ask questions, especially if you are considering acting on these concerns.

What you should do next

The royal commission will continue to deliver surprises with its final report expected in early 2019. The next steps will be to see what changes needed to be made and how this will affect investors, families, clients and the advice profession. During this process I will continue to keep my clients up to date with relevant information and look for further opportunities.

The royal commission should not put you off getting advice. My goal to deliver value to my clients, reduce their stress and make their lives more fulfilling. As a Brisbane Financial Advisor, I can help you get clarity around your future, your options and the next steps in plain English. Book an appointment today to learn more.

What you need to know

Constancy Wealth Management (ABN 51 168 427 361), trading as Constancy Wealth, is an authorised representative and credit representative of AMP Financial Planning, Australian Financial Services Licensee and Australian Credit Licensee.(AFSL and Australian Credit License Number 232706)

This information does not take your circumstances into account, so read the relevant disclosure documents and consider what’s right for you. If you acquire an AMP product or service, AMP companies and/or their representatives will receive fees and other benefits, which will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Ask us for more details.

This post contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. Please talk to a tax accountant before acting on any general tax advice.