This is a partnered post.
Selecting a financial services provider is not easy.
What to Look for in a Financial Services Provider – 5 Keys
For starters, there’s the matter of suitability. Not in the “suitable investment” sense, a legal definition that represents just one consideration among many. Rather, a broader definition of “suitability” that accounts for the vast and varied needs of you, the prospective client (and your family or business entities or whoever and whatever else you represent).
A host of other considerations come into play, as well. Ultimately, your choice of financial services firm may well turn on subjective preferences or “feel” that you can’t really quantify.
That’s okay. Above all else, it’s crucial to feel comfortable with your choice of financial services firm. You plan to work with them for years to come, presumably.
Let’s take a closer look at six additional criteria to evaluate when choosing a financial services firm. Which, if any, have you already taken into account?
A Commitment to Hands-on Service
Your financial services provider must be committed to hands-on service. You have every right to feel like more than a number, no matter how substantial or modest your assets under management. If it seems clear that your financial services provider sees you as little more than a source of commissions or fees, it’s time to look for an alternative.
Where do you live, work, and own property? This question should guide your search for a financial services provider. For high net worth individuals with business interest and real property in multiple jurisdictions, it pays to work with a geographically diversified financial services provider like this Asia-Pacific based company. Local market expertise matters.
Personalized, Round-the-Clock Attention
Personalized service is just the beginning. You’re no doubt expected to be on call around the clock to address urgent business matters; why should your financial services provider be any different? After all, there’s always a market open somewhere.
Devotion to Client Needs and Interests
One of the most common mistakes people make when hiring financial advisors is failing to acknowledge warning signs that their financial services provider does not have their best interests at heart. If the fiduciary standard applies in your jurisdiction, look for an advisor sworn to act in your financial interest, rather than their bottom-line interest.
Value-added Services Beyond Investment Management
Look for a financial services provider that does more than mere investment management. Your wealth is multifaceted and complex; you deserve to work with a partner that understands your needs and objectives, and can actually help you address them without passing you off to a third party.
Be Slow to Hire and Quick to Fire
As a business leader, you’ve probably heard the truism: “Be slow to hire and quick to fire.”
The same wisdom applies in choosing a financial services provider. There’s absolutely no reason to rush into a relationship that you’d like to last years or decades. It’s far better to take the time to vet as many available options as possible and choose a provider that best fits your needs — or, failing that, simply “feels” right for unquantifiable reasons.
This is doubly true if you’re changing financial services providers, rather than hiring one for the first time. Don’t let artificial urgency goad you into a hasty-decision. You only get so many chances to get this right.