One of the questions I get asked most frequently by advisers is whether one service level is enough to offer to all clients. My answer is always the same- it depends on the type of clients with which you work, something which will vary from firm to firm. For some, one service level might be suitable for all clients, whilst for others, it may be necessary to offer different levels of service to cater for the variety of clients serviced by the firm.

When RDR came into force in 2012, I had only recently started my financial services journey, and I clearly remember advisers creating ongoing service agreements with bronze, silver, and gold service level models. A three-tiered system worked for many then, and this may well still be suitable for certain firms, however as time has passed and consumer needs have changed, I have seen an evolution in how service levels have been designed. Some firms have introduced service levels split by method of delivery. For example, in an age where we are all now accustomed to Zoom and Teams calls, many firms offer a virtual service which is more convenient for consumers balancing busy lives. However, there are also clients for whom nothing can replace the experience of an in-person, face-to-face meeting. When appraising these different channels for offering advice, some firms have adopted the approach that less travel time means ongoing adviser charges can be reduced, thereby offering more value to clients- something which has been increasingly under the spotlight since the implementation of Consumer Duty.

Even before Consumer Duty was a twinkle in the regulator’ s eye, my team was helping advice firms work out how to clearly calculate and communicate the cost of their advice, and vitally, how this translated to‘ value’. However, in a post-Consumer Duty world, this has become even more important, and firms are keen to ensure that what they provide to their clients is not only profitable for the business but also valuable to the client in the long term.

When designing an ongoing review service, it is important to consider:

● The services your clients will find beneficial.

● The tangible services you are able to offer to clients.

Zayd Ahmad, Business Consultancy Manager, Simplybiz

4 | The Adviser Online