Practices should consider the sufficiency of their client reviews, given the current market climate.
Volatile investment market conditions will definitely impact the next round of client reviews by advisers, according to independent consultancy Business Health partner Rod Bertino.
"Reviews by Business Health of more than 300 of the country's top advisory firms have revealed two thirds of practices are not reviewing their A-class clients quarterly," Bertino said.
"One or two annual reviews might have been enough in the past, but it is dangerous to assume past review cycles will be adequate over the next six to 12 months.
"For the first time in a long time, advisers will have to talk clients through negative returns, and how they go about this is going to be particularly important."
In 62 per cent of practices surveyed, Business Health found advisers conduct reviews alone, however, Bertino said now is an ideal time for advisers to introduce clients to other members of their practices.
"This will reduce key person dependency, as it will give clients the chance to understand the roles of other team members and get them comfortable directing questions to other staff."
It will also show clients that staff are all encompassing, which will boost confidence in this time of market turmoil, he said.
Additionally, it was found 85 per cent of top practices have a documented review process in place.
"Having a documented review process is also important as it ensures consistency, greater accuracy, and that tasks can more easily be delegated to other staff members," Bertino said.
In Part 2 of our exclusive series, we ask leading names to nominate their best investments, the most effective industry group and the importance of platforms.
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