The Greek Philosopher Heraclitus was a smart fella.

Whilst he philosophised about a wide range of topics including the nature of the universe, Character and Destiny he had one subject he felt was especially pertinent…

Change.

Although Heraclitus’s was from a different era his insight on change holds true today…

Nothing endures but change.

Whilst this mantra tends to apply to many aspects of our lives it also applies to many of our professions.

Since the industrial revolution we’ve seen entire industries rise and fall and even in the last few years brand new occupations being invented due to innovations in technology in recent years. (I can’t help but think about how an ‘app developer’ might explain their job to someone from the 1950’s or 60’s)

We’ve also seen, due to a number of factors, the nature of many of our occupations change.

The methods of work conducted by accountants, lawyers, sheet metal workers or  dockers are significantly different due to the addition of technology and the systematisation of many of the previously laborious jobs.

However, by and large, most jobs don’t change their scope. Lawyers still practice law. Accountants still account and Sheet Metal Workers still cut metal.

However in the world of financial planning and advice there has (and continues to be) an evolution in the type of work we do.

Historically financial advice was about financial product.

However we find that the work we do with most of our clients is about changing the ‘end point’. Instead of the ‘end point’ being a client being recommended the ‘end point’ is rightfully now putting the client in the best long term financial position regardless of whether a product is involved or not.

Interestingly the market in financial advice remains split. There are firms who are more comfortable with a product related approach. However there are a bunch of firms, including us, who see ‘product’ as a part of the solution but not the goal.

Firms like this (including us) provide a consultancy style service. For us our service is all about providing the right advice to both our private and corporate clients regardless of whether there’s a product involved.

However in this new world. A world where the ‘client’ is more important than the ‘product’ how do you define this specific service. It’s something we’re constantly thinking about and don’t think we’ve come up with a definitive answer yet…

The issue with continuing to call our service “Financial Advice” is it’s historically connected with “selling financial product” and in many of our minds generate insights of someone who’s job it is to sell the latest pension, investment or protection policy. This isn’t what we do with our clients.

I quite like the term “Financial Planning” as it’s far closer to what we do for our clients however I was speaking to a fellow professional the other day who made a comment which resonated.

We we’re talking about this quandary (what to call a consultancy based and not product sales based service as a financial adviser) and she made the following comment…

“I reckon what we do is provide ‘Financial Intelligence'”

….and I reckoned (and still do) she’s onto something.

After all, if an account or solicitor provides ‘legal intelligence’ and ‘tax intelligence’  surely a consultancy based financial planning model does the same but in the world of personal (or corporate if you’re financial planner is in this market) finance.

I’m not sure whether the phrase explains enough….or maybe it does. Maybe “financial consultancy” is more appropriate.

However regardless of how we explain it, or how we define our service we’re glad we’ve taken and continue to take the approach we have. Which fundamentally is about out thing…

Putting our clients first.

I’d be interested in your thoughts.