The four-minute mile, putting a man on the moon, and climbing Mount Everest were all thought impossible until they weren’t.
Similarly, developments at VouchedFor are turning the once-unthinkable idea of creating a comprehensive database of financial advice/planning firms (that harnesses the power of genuine reviews) into reality.
We spoke with VouchedFor’s founder, Adam Price, to help you understand what their new directory means for your business.
Yardstick: “What problem are you trying to solve with the new Universal Directory?”
Adam: Of the five million consumers in the UK with £250,000 investable assets, only 25% use a financial adviser (Source: The Lang Cat).
That means millions of people who would benefit from advice don’t seek it out, mainly because they lack trust or understanding. In the worst cases, scammers increasingly prey upon them.
In that context, it felt unacceptable that the profession is missing an easy-to-use comprehensive directory where consumers can access the credentials of all UK advice firms.
VouchedFor already undertakes more checks than any other directory. We check advisers are regulated by the FCA, verify their qualifications and independent status, check their reviews are genuine, and encourage them to publish their fees. We also monitor news outlets and take action if there’s any reason for concern.
Expanding the directory to include a free profile for every firm is the next step to improving transparency and trust in the advice profession.
The free firm profile includes your location plus confirmation that your firm is FCA registered. You can also update it to share your services and a list of advisers clients could expect to meet.
If your individual advisers are already on VouchedFor, their profile will link to your firm profile.
Yardstick: “What are your hopes for the Universal Directory?”
Adam: We have several.
Firstly, we believe the directory will improve consumers’ experience searching for an advice firm by creating one user-friendly and searchable directory.
Secondly, we hope It will encourage product providers to improve their advice signposting. Finally, prospective clients can find a firm’s profile on VouchedFor and be reassured that it is fully regulated by the FCA.
Yardstick: “How much do firms pay for these profiles?”
Adam: Nothing. They are completely free to advise firms.
Our standard charging structure applies if firms want their advisers to have individual profiles and link them to the firm profile.
Yardstick: “To achieve their aim, directories need consumers to use them. Where do providers tend to signpost now, and how will you engage with them to increase awareness of your directory?”
Adam: We recently conducted a study and found that consumers are most commonly signposted toward government guidance services, Money Helper and PensionWise; eight out of 15 pension providers we looked at take this route.
That can’t be the right outcome for consumers. As a profession, we’re not helping consumers understand that guidance and advice exist as two separate options, each of which will be right for different people.
We’re speaking to providers about how they choose to signpost, and the Universal Directory is a compelling reason for them to reconsider their current approach.
Yardstick: “Can firms opt out if they wish?”
Adam: If firms wish to opt-out, they can do that.
We’d love for advice firms to get behind the Universal Directory, which will benefit the whole profession. The better and more up-to-date the information on their profiles is, the sooner that will happen.
Yardstick: “What actions do firms need to take?”
Adam: Firms can add their logo and services, and any advisers clients could expect to meet.
If their advisers are on VouchedFor, their client reviews will also feature on their profile.
To claim their profile, firms can book a call with one of our team by clicking here or calling 020 3111 0580.
