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Referrals in Regulated Financial Services : Myths, Misunderstandings & Misapprehensions
| Content Provider | Semantic Scholar |
|---|---|
| Author | Grierson, Stuart Brennan, Ross |
| Copyright Year | 2014 |
| Abstract | It is the contention of this paper that the field of regulated financial services has been illserved by marketing theory and that, as a consequence, the nature of marketing in this sector has been misunderstood, the key mechanism for generating new business in the field, namely referrals, has been the subject of serious misapprehension, and the guidance offered to practitioners has been negligible. The principal source of these misunderstandings and misapprehensions has been, as the conference organiser presage in their call for papers, an inadequate grasp of the complexity of this field of business. In particular, the role of the independent financial adviser (IFA) appears to have been conceptualised as a sales role, and the nature of the relationship between the IFA and the client has been addressed as though it were a straightforward buyer-seller relationship, with the IFA selling products to the client. It is unlikely that these conceptualisations were ever satisfactory and, following recent regulatory changes in the sector, they have become even less relevant. Most notably, since January 1 st 2013 financial advisers have been prohibited from receiving commission for the sale of products on behalf of financial services companies, and so independent financial advice has become a fee-based service. Prior to this change, when financial advisers were permitted to work on a commission basis, it was perhaps reasonable to conceive of those who did as, in some sense, agents operating as sales-people on behalf of financial services companies. Subsequent to this change, however, personal financial advice for investment products in the UK has become an entirely fee-based service delivered by a qualified professional to a client, and regulated by the Financial Conduct Authority 1 . |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://uhra.herts.ac.uk/bitstream/handle/2299/15880/Grierson_Brennan_AM2014_v3.pdf?sequence=2 |
| Alternate Webpage(s) | https://uhra.herts.ac.uk/bitstream/handle/2299/15880/Grierson_Brennan_AM2014_v3.pdf?isAllowed=y&sequence=2 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
