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Bad experiences with financial advice

By Jozef Spiteri
This article is published on: 1st December 2021

Within any sort of market, people have different experiences which contribute greatly towards how that person feels about that specific market, or a vendor within that market. One might think that the feelings and emotions which a person experiences in everyday markets might not apply to the financial markets. However, opinions about financial services and products can be formed in a similar manner to any other common market.

I can explain this quickly using the fruit analogy, a market which most people can relate to. In this market, consumers can choose from a number of different vendors, selling similar products. Even though products might seem to be pretty much the same, individuals still tend to have their preferred fruit sources. How can this be? Well, preferences are formed through experiences and opinions of people surrounding that individual. If you have a negative experience purchasing fruit from a particular vendor, you will probably avoid going back to that seller and look to take your business elsewhere. Similarly, you might avoid purchasing fruit from a store if you hear negative feedback from someone else. This human behaviour is very similar to what goes on in the financial market.

Financial services is home to many financial advisers offering a vast range of products, and, unfortunately, some customers might not get the satisfaction they would have expected prior to investing their money. This can either be poor investment performance, or irregular service from the adviser. For example, the original adviser may have left the firm and the ongoing service is unsatisfactory.

Fortunately, just like in the fruit example discussed earlier, investors are actually able to move their business from one adviser to another if they are not satisfied.

Some clients may not be aware that they have this option. Often, people keep the original investment in the hope that performance improves. Whilst some patience is recommended when taking a long-term view, regular contact and discussion with the adviser is essential. Clients should do some research and be prepared to look for an adviser who will listen to their needs and offer the level of ongoing service they require.

This is something which the Spectrum IFA Group understands. The group has a dedicated fund research team who use a strict research process before recommending suitable investments for clients. Criteria includes, among others, performance, regulation and liquidity, ensuring clients are as protected as possible. Clients also receive regular updates and reviews of their financial goals.

As regulation continues to evolve, advisers must keep up with rapid change. Brexit has also had a big impact for expats in Europe who were still using British advisers who no longer have the necessary licence to advise these clients.

Spectrum advisers are all living in the region in which they are advising, allowing advisers to have a much better understanding when dealing with clients either living there, or who are looking to move to that part of the world.

If you are looking for a fresh look at your financial planning, with a regulated adviser who can offer the level of service you deserve, please feel free to contact us, no obligation upon initial discussions.

Article by Jozef Spiteri

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