Financial Advice - Sales or Not?

There's an interesting perception in the financial services industry that its only the IFA working on a truly 'whole of market basis who works on an advisory rather than sales basis.  I personally don't subscribe to that belief and I'll tell you why.

Despite the IFA working on a 'whole of market' basis, how many of them are targeted?  Thats right, the T word. Whether employed or self employed most IFA or advisory jobs that require the effective 'sale' of a product to a consumer are targeted.  If you're working on an employed basis there are often salary validations to be achieved, no employer in the advisory environment gives money away! And if self employed, unless the IFA has a huge amount of funds under management and has enough trail commission built up to pay the mortgage and take at least two holidays to Dubai in a year, they will have to set themselves some personal targets, even if just to survive. How do financial advisers and IFA's make any money? They gain commission or a fee on the provision of a particular product from a particular provider to a consumer - a sale! They are selling products are they not?

If there are targets in a role then there are quite often sales that have to be made in order to achieve those targets.  When the IFA goes to see a client, yes of course they go with the idea that they will provide the best advice to a client but they are still effectively selling the features and benefits of a particular financial product and what is a fact find if not a sales process?  What are you doing in a fact find?  Yes, thats right, you're are building a rapport, probing for information you can later use to disturb the client and generate a need for a product and closing the deal by securing a commitment to do the business - a sale by any other name.

So, is it any better to see an IFA than it is to see a financial adviser from a bank or perhaps a multi tied organization?  In terms of the sales focus I doubt it. Yes, they may be able to offer a wider range of financial products and therefore be able to offer something more closely fitting your particular requirements but don't be blinded by the holier than thou attitude, financial advice is primarily a sales focused process, whether IFA or not!