Advisers have made strides towards becoming a profession but a reluctance to accept certain standards has meant the industry is not yet where it could be, says Michelle Hoskin.
Hoskin, who through her firm Standards International, promotes markers of excellence such as the ISO 22222, says any "true profession" is characterised by universally accepted standards, qualifications and a commitment to global best practices.
A failure to adopt such established standards means it will take longer for the industry to get to where it needs to be.
In a Q&A with FTAdviser In Focus, Hoskin outlines her seven "pains" in advice firms and explains what advisers can do to stay at the top of their game.
FTA: What makes a good advice firm?
MH: Isn't this just the million-dollar question. For me, a good advice firm is one that places its clients at the heart of everything it does. And when I say "client", I don't just mean the external client… I mean the internal 'clients' too.
This, of course, means not only providing an amazing client journey, one which fully understands the unique needs, aspirations and circumstances of each client, but also having that same depth of understanding for their team.
Great advice firms tailor their approach to those they support, taking into account any special considerations and vulnerabilities that may be present.
Furthermore, a leading firm recognises and embraces the importance of striving for efficiency and effectiveness at all times. It invests in its people, fosters a culture of continuous learning and professional development, and it also leverages technology to streamline processes, improve service delivery and enhance client and team engagement.
FTA: What's your assessment of the state of the current advice market?
MH: The current advice market is evolving, with significant strides made towards professionalising the sector. However, there is still work to be done.
A "true profession" is characterised by universally accepted standards, qualifications and a commitment to global best practices. While we are seeing the introduction of standards like BS 8577 and ISO 22222, which are raising the bar for professional practice, the sector has sadly not yet caught up with this level of operational innovation.
The day the profession stops trying to reinvent the wheel and adopts well-thought-out and established frameworks of excellence will, in my view, be the day that we finally stop wasting time and truly start reaping the rewards of years' worth of "seed sowing".
The journey towards becoming a true profession involves not only adopting these standards but also fostering a culture that values ethics, integrity, and client-centricity.
FTA: How can advisers ensure their firm is and remains the best it can be?
MH: Advisers can ensure their firm remains at the top by embracing a culture of high standards (not just academically but also from a business perspective) and continuous learning and improvement for its greatest assets.
