Annette Kinsman from Succession Advisory Services gave East Anglia branch an “absolutely outstanding” presentation on building relationships with solicitors and accountants. Her detailed knowledge was second to none, writes branch chairman Chris Adams CFP^CM.

While accountants, solicitors and Financial Planners are all professionals, it can be a difficult to understand the different challenges we all face. The Legal Services Act has completely turned the legal world on its head. Before you approach solicitors it is essential you know the difference between a Legal Disciplinary Practice (LDP) and Alternative Business Structure (ABS), and many other issues.

Historically, advisers have often been keen to the relationship through commission or fee sharing. Not only should this be approached with extreme caution because of declaring this to the client but also the VAT issues arising. All professionals have a duty of care and the need for advice from accountants and solicitors should be highlighted but referrals must be handled carefully. Poor advice from third parties could cause problems.

Everyone will have heard of the rise of so-called “Tesco Law”, therefore legal firms are going through their own RDR challenges and asking themselves what are their specialisms and where do they add value? Financial Planners are in an ideal position to help other professionals and at the same time find a firm that not only complements your services but theirs too. Rather than trying to build relationships with multiple professionals, select a few because a true strategic alliance takes a lot of time and dedication. 

Accountancy firms have always been more commercially attuned and are keen to tap into financial services. Annette noted that this could help accountancy firms to offer a comprehensive suite of services – their own, plus Financial Planning - something that fosters deep relationships and long-term client loyalty.

These professions are facing challenges that the financial services profession has been through. Interestingly, their regulator is starting with a light touch, so there is immense responsibility to see if it works. At the end of the day, every firm has to design a clear service proposition that is there to serve clients. If it doesn’t work, then tougher regulation lies ahead for them too. You can help.