A study conducted by Dr. Larry Skurnick, a Measurement Research Specialist, for the College of Financial Planning, identified 8 categories of what financial services advisors must do to practice as professionals.
- Evaluate client’s needs
- Explain financial and risk management concepts
- Clarify client goals
- Analyze information
- Prepare suitable solutions and recommendations
- Implement the recommendations, (ethically persuade clients to take appropriate action)
- Monitor plans and strategies
- Establish and maintain accurate records and perform other professional services.
The study goes on to report there are 6 things financial advisors must know.
- Communication skills
- Risk management
- Investment planning
- Tax planning
- Retirement planning
- Estate planning
Except for communication skills, what you must know as an advisor, depends on your area of responsibilities and the scope of your work. This means communication skills are the only skills all financial advisors must know. Financial planners, insurance agents, investment advisors, registered representatives, CPA’s, and attorneys are subject to numerous compliance, disciplinary and ethics rules. Lack of effective communication is often the cause of rules violations for an otherwise ethical advisor. You benefit from cultivating great communication skills because they apply to everything you must do as a professional advisor. According to the Preamble of the Society of Financial Services Professional’s Code of Professional Responsibility, being an ethical advisor means providing advice only in those areas where you maintain the necessary knowledge and skill to do so.
It names four essential traits of professionalism:
- Knowledge or expertise
- Service to others
- Working with other professionals to enhance the practice and reputation of one who is a member
- Self regulation
It goes on to say, true enforcement of ethical behavior must come from the personal census of each individual and that a member shall continually improve his or her professional knowledge, skill and competence. For many advisors, and in many organizations, skill development has tipped out of balance because far more time and financial resources are spent on product knowledge and compliance topics than on improving communication skills. If you, or someone from your firm, were charged with a rules violation what evidence could you show and prove you are taking measures to continually improve communication skills?
It’s easy to overlook this professional responsibility. Being a financial advisor, you are probably already a good communicator. You realize the ability to communicate effectively helps you to connect with prospects and clients and help them achieve the results they want. You understand communication skills help you apply the technical knowledge you must know and do the things you must do to ethically and professionally attract, serve and keep more clients.
Why would you wait to go from Good to Great? No matter how strong your communication skills are today, there is a proven way to improve them. We guarantee it. Contact Us Today.
