Financial advisers often struggle to build productive relationships with solicitors. Follow my top 10 hints to maximise returns

1. Adviser/Solicitor introducer relationships - 10 tips to
avoid the “dating traps”

2. The Issues
Advisers often waste time pursuing solicitors as introducers without establishing
the key building blocks.
They commonly seek to impress solicitors without referencing the depth/scale of
their operation and the value they add in the financial planning process.
To compound this we have solicitors approaching multiple adviser firms at the
same time with little intention of building productive relationships.
Follow my top 10 rules to maximise returns from meetings with solicitors.

3. Step 1 - build an introducer event
Build a programme for solicitors visiting your offices. Make sure this includes a
discussion around your ownership/structure/history. Include meetings to discuss
your investment process and meetings with paraplanning & compliance people.
Make sure they are aware of the scale of your operation & resources of people,
systems etc to put into this relationship.
Make sure key staff are available & on message. I have known the most prickly of
compliance/paraplanners to create a hugely positive vibe. Remember their
policing of how an adviser does business is a huge safeguard for introducers.

4. Step 2 - Build a due diligence report
It should reflect the introducer programme (previous slides) beefed up to represent
a structured report on the appropriateness of your business as an introducer
partner (draft document available).
This is a mandatory requirement for all solicitors (new SRA rules) introducing to
advisers & getting a split on the advice fees.
Having a report ready to go creates a benchmark that other firms might not be
able to match. Get your report established as the benchmark & stay in control.

5. Step 3 - Relationship ownership & sharing
Have a clear plan on how you will make the most of specialisms within your firm.
By all means have a lead adviser contact but make sure all of your firm's specialist
adviser skills are put to good use.
This will only reflect a Solicitor firms own approach to specialisms within their
practice.

6. Step 4 - Build client profiles
Look at the specialisms of the individual partners/fee earners & produce a number
of client profiles to match.
Clients seeking legal advice generally need to correspondingly modify their
financial plans, so highlight this in your client profiles.
Use examples of the risks of not modifying your financial planning in each
circumstance.

7. Step 5 - Existing adviser/client relationships
Address partners concerns about clients possibly having an existing adviser
relationship. Too often solicitors fail to introduce because of this without testing the
relationship.
Solicitors may think there is an adviser involved but this adviser may just not be
offering a full service or simply may no longer be in the picture.
Correspondingly do not fall into the trap with your clients of assuming they have
an ongoing relationship with a solicitor just because they have acted for them in
the past.

8. Step 6 - Test Solicitors client ownership issues
Be aware that some solicitors get most of their clients from referrals from other
solicitors.
As they are not the owners of the relationships they will not introduce these clients
but will happily take referrals from you.
If this is the case see if they might introduce you to their introducers.

9. Step 7 - Don’t fall for the breadcrumbs
Just like in human relationships there are those who spin multiple plates & throw
you a few breadcrumbs as a sign of goodwill but nothing substantial in return.
Be especially wary if they approach you & are looking for you to introduce some
clients first to move the relationship along.
Expecting something back for the introductions you pass across is a sign of
strength. It is also completely appropriate where you have clients from similar
backgrounds & with similar needs. This mutuality should be reflected in your due
diligence report.

10. Step 8 - Have regular surgeries
Establish regular surgeries - Ongoing contact with firms is the key to building
productive relationships.
Agree agendas in advance, discuss topical items, client profiles and review of
previous sessions. Be prepared to ask partners to bring names of clients they
think your solutions might apply to.
Look for feedback & make sure you are getting across the board support.
Share any concerns with your main contact in the practice.

11. Step 9 - The service proposition
Build a system for servicing the solicitors practice covering response times,
communications, dedicated contact points etc.
Make sure they are happy with your terms of business & have adopted your due
diligence report to establish you as their preferred partner.
Make sure progress on all introductions are collated at a firm level and shared at
an agreed frequency. This is irrespective of any feedback at a partner level.
Meet key contacts quarterly to review progress.

12. Step 10 - The importance of two way referrals
Finally & most important make sure you build a programme to refer clients back to
the law firm. Individual partners may get just a small fraction of any split on your
fees, they will be very motivated by any clients you can give them.
For example, let’s say you have a decent percentage of clients say over 60 and
prime candidates for an LPA. Do you just mention this in passing or refer to it in
your report? If so consider really selling it to them and warning them of the
possible consequences of failing to act, then introduce them to a firm you trust.
Make sure your feedback reports cover clients introduced to you and from you.

13. Reflection - consider other changes in practices
Advisers are used to having a robust repeatable investment process.
A similar robust repeatable process may not yet be an absolute requirement for
estate planning clients but how often have we seen today's best practice
becoming tomorrow's compliance norm.
For more help contact me on:
Email: kevinraftery@adviserskills.co.uk
Mobile: 07760 880626

14. The legal bits
Legislative references are based on Adviser Skills Ltd understanding of UK law &
HM Revenue & Customs practice. Tax & legislation are likely to change.
The value of reliefs depends on an individuals circumstances.
No guarantees are given as to the effectiveness of any arrangements when
applied to individual clients.
These are simply suggestions and Adviser Skills Ltd accepts no responsibility for
advice which may be formulated on the basis of these examples.