Is regulation the answer? There is already too much regulation; today, the greatest issue facing advisors is trust, but it is futile to regulate morality or instill trust through regulation. Advisors who believe that they can hide behind professional designations, lofty titles and awards attesting to their prowess in selling products are also suspect. Increasingly, clients will rely on referrals from friends, family and related professional advisors based upon actual experience with an advisor, regardless of any written claims, titles, designations or awards.
Is consumer education the answer? No-and yes. Each advisor must clearly articulate their philosophy and methodology. Too many advisors are trained in providing answers, but fail to ask the right questions. If advisors don't frame the questions properly-and assist their clients' in doing so-neither are going to derive the correct answers that will lead to a fruitful and productive relationship.
LeBlanc: But in order for financial professionals to understand more about wealth management, they need to be educated. The Family Office Exchange offers, among other things, global state-of-the-art best practices in wealth management, wealth preservation and private philanthropy. Are there any other educational opportunities?
Greenlaw: A new certification program was recently introduced by IMCA designed to address wealth management issues [see IMCA sidebar]. However, there still is no formal designation for the family office specialist. Any advisor who utilizes an independent platform of services-and incorporates a team of select multidisciplinary advisors-could justify their role as a family office specialist.
Rowan: The formal title for family office specialist is "family office executive." There is no professional designation for them, but who knows what the future holds? In the meantime, it's just the school of hard knocks. At our organization [the Family Office Exchange] we have an annual conference, specifically engineered for multi-family offices and firms that are setting one up, where we discuss building a framework for the organization, crafting the right marketing plan and developing a profitable pricing model.
Walker: A lot of CIMA-designated consultants have told me they wanted to learn more about financial planning. They understand that consulting is defined as the investment process, and that life planning and financial issues are more than just tax efficiency and separately managed accounts. Wealth management and holistic financial planning concern such issues as estate planning, disability planning, liability planning, risk management, insurance, business planning, succession planning. For consultants who want to learn more about wealth management and financial planning, they should go through the same process they did while learning the consulting process. They could begin by taking the CFP course or working with a firm that emphasizes holistic financial planning.