Happy New Year!
Here’s a question for all our readers to kick off 2018…
What is it you think we actually do here at Clarity?
I’m guessing more than a few of you immediately thought:
“You guys sell mortgages and life insurance.”
Well you’d be half right. To get the full marks you would have needed to think more like this…
“You guys advise us about mortgages and life insurance.”
And now I’m guessing more than a few of you are thinking:
“C’mon Alan, that’s just sales patter…in reality it means the same thing!”
Does it? Let’s think about that.
Imagine you stroll into MacDonald’s and ask for a Big Mac Meal.
Which answer do you think you are more likely to get.
“Certainly, would you like to go large?”
“OK, but first we need to discuss and analyse your calorie, fat, and salt intake and make sure you are not exceeding your daily recommended intake based on your lifestyle, diet and overall consumption requirements.”
I’m thinking nobody ever heard the second answer, right!! So that is an example of an “execution-only” sale. You ask to buy something, the seller, sells it to you. Simple. The second, longer, answer would be indicative of an “advised sale”. No transaction takes place until a full discussion and analysis of your needs and wants (commonly called the “fact-find”) has been completed.
Now I don’t absolutely know for certain whether MacDonald’s ever encourages its staff to carry out an advised sale, but I doubt it very much!
On the other hand, I am one hundred percent certain that we are never permitted to carry out an “execution-only” sale. In simple language, we are forbidden to sell anything without undergoing the full, regulated, compliance-checked, advised sale process. Every single time.
So now you understand we are rather keen on the A word – Advise!
And we are also very keen that all our clients understand that in our regulated industry it is always:
Advice first & sales second…
…and only then if the advice confirms a suitable mortgage or protection product is available and required!
Next month, I’m going to develop this idea and explain how the presence of an advisor in the sale of financial products is not only the optimal method of ensuring you get the most suitable product for your needs, it also provides an extra layer of protection and reassurance for you, the customer.
All the best in 2018!