In the backdrop of big ticket fraud by CitiBank’s rogue Relationship Manager, the importance of getting the right financial advisor has been highlighted. Smaller cases of mis-selling, mis-communication and/or frauds happen all the time but they do not prompt us to rethink/review our financial advisor.
But it ain’t easy. Personal finance journos/experts would like you to evaluate your advisor in terms of qualifications, trust factor, holistic approach and accessibility. But didn’t Shivraj Puri, Citi’s RM have all these attributes in the highest category?
The media/experts have more solutions. They advocate setting up of financial seller and adviser regulations as a priority. In the same article, they blast the existing regulators of having a hand-over-ear approach—if I don’t hear this I don’t have to do anything about it.
In any case looking at the Regulators as a solution is living in utopia. For example, just having traffic police will not stop accidents. The traffic police can set up rules. But it is up to us that we don’t lose control.
So how do we get the right advisor for ourselves? For starters, this article at NISM’s website makes sense..
But it’s one thing to have the knowledge to get the right advisor and another to really have one! I mean the guys who got duped by Citi’s RM were all smart and knowledgeable people.
Having been in the financial services industry for 20 years, I know that the advisors are trained to understand the prospect’s psychology and respond accordingly. They are trained to ask the right questions and close ended questions that leaves no space for you to wriggle out!
It’s time that the customers also understand the psychology of an advisor! And decide on things like:
- Is the advisor being too pushy?
- Has he/she been transparent in his/her dealings?
- What’s the body language of the advisor?
- Does the advisor have valid client references?
Are there any psychology experts there? We can build a simulation game together to help customers understand Advisor/Agent behaviour!
Interesting, no? What are the behavioural traits to look for in an agent/advisor? Please share your answers/thoughts.
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I recommend finding an advisor with specific expertise working with clients in a similar financial situation to yours, just like you would find a doctor who specializes. Whether you are a small business owner, divorced woman or retiree, look for an advisor who is a good fit.
dear all !
Wish you all good luck and very happy investing in 2011.
Competetion is one of the best way to find a good advisor.
A good advisor NEVER runs away when others present another set of investment options.
thanks