Framing up meetings – Part 5: Explain your role

Part 2 of this series discussed the importance of setting aside assumptions based on experience with traditional methods of financial planning.  The relationship you’re aiming to establish with your clients differs from the traditional financial planning relationship.  The role you intend to perform within that relationship is also non-traditional.

During the frame-up, explain to your clients that the role you’ll be performing aims to maximise the probability of them achieving their financial objectives.

To successfully perform that role, you not only require an objective understanding of the basics of behavioural finance and the current range of products, services, research, and legislation, but also a subjective understanding of your client’s financial needs, circumstances and objectives.  

You need this subjective client-centred understanding because your performance as an adviser should always be examined within the context of your role of maximising the probability of your client’s objectives being achieved.  You must be judged as adding value if you can do for the client what they would do for themselves if they knew everything you know.

The point is that measures of your performance should not be dependent on the vagaries of economic, legislative, or competitive factors beyond your control.  Changes in legislation, world events, product performance and market conditions are inevitable.  Your role as a financial adviser is to bring greater financial certainty into your clients’ lives despite these uncontrollable factors, to provide your clients with financial leadership and expertise, and to forge an advice relationship that they have confidence in.

Image: Carlos Porto /

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