Wednesday, November 26, 2008

Reasons for doing fact-finding for our clients

Over the last 6 months in my current FA firm, I had did more fact-finding than my 4 years in NTUC Income combined. Fact-finding is such a routine under the FA platform to such an extent that I find it very hard to give advice without going through it.

Fact-finding seems like a chore to me in the past. I always feel that the KYC(Know Your Client) form that I used previously was too simplified and not detail enough. I always have to use my own designed fact-find form when I meet my clients and the layout of my own form is simply not professional enough.

Anyway, I'm glad to be under this new platform where the forms and programs suit me better. Today, I just like to share with you 10 reasons why we should complete a proper fact-finding for our clients and stop ticking the "Product Advice" column in our submissions.

1. It helps us identify the client’s actual needs and objectives.
2. It provides a more efficient and orderly way to gather information.
3. It gives us a chance to record what our clients tell us.
4. It can identify multiple needs and can help generate more business for us.
5. It is able to help identify areas of priorities for the clients and recommend what is more important first.
6. It provides us with a good way of explaining our recommendations and shortens our time needed for closing.
7. It forms the basis for future reviews.
8. It helps us project a more professional image.
9. It will help defend ourselves if the client turn around and say we mis-sell.
10. It helps us comply with your “Know Your Client” obligations and don't need to worry about MAS audits anymore.

This method suits me better because I'm simply not the type who can use my mouth and a piece of paper to sell a concept to close a case.

However, this method is very tedious and be ready to work very very hard if you going for such financial planning route. Fact-finding is just the first step. More time will be taken for preparing the financial plan, formulating recommendations, making product comparisons, making adjustments to clients budgets and the tons of paperwork that follows, etc...


Anonymous said...

Adrain, fee based advice will be soon here

Anonymous said...

Adrian, Insurance is easy to sell. Apply commonsense on your prospects and they will buy. Don't be stubborn and do free financial planning and sell so many term insurance and RSP. You will be overloaded and be out of the industry in no time.

I suggest that you stop this blog and start to focus on your goals. Have a dream and work like a normal adviser. With your knowledge, you will be successful with some polishing. You had restricted yourself to be successful in all boundaries of your mindset.

Don't waste time in this blog where I doubt gives you any business. Its unlikely anyone will appreciate your effort because most of your readers are most likely practitioners themselves.

Go for a holiday and reflect on yourself. I'm your friend. I'm not here to discourage you. I want you to think carefully if you will be burn out before you complete this marathon.

Khiat Han Hwee Adrian said...

Hi Anonymous 12:52,

Thanks for your concern. I don't work just for money alone. I earns a modest income and certainly far from any top agents. I also seek meaning in the work I do and find satisfaction from it.

Anonymous said...

Dear Adrian,

it's not impossible to earn a comfortable pay selling term n RSP. You just have to support that with enough car insurance sales. Best if you got young clients who always buang car or really rich people with big cars.

With regards to the part where you're unable to verbally string proper sentences together, try some cold calling.

Good luck.