When Centers-of-Influence think they are Investing Experts

Beverly Flaxington

Don’t miss Bev Flaxington's upcoming APViewpoint webinar, The Difficult Client: Five Strategies for Resolving Challenges and Conflicts, on Thursday, April 13 at 4:15 pm.

Beverly Flaxington is a practice management consultant. She answers questions from advisors facing human resource issues. To submit yours, email us here.

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Dear Bev,

Lately we have been dealing with a couple of clients who are aligning themselves with outside advisors (centers-of-influence, e.g. attorneys and accountants) whom we find very difficult. The issue isn’t personality; it’s deeper than that. These advisors have an opinion about everything we do. They are not investment experts but they ask questions of their client and then the client in turn asks us. This is very divisive.

We have always approached other advisors as partners in a team working on behalf of the client. Even if I would not personally choose someone, I’m not going to question my client’s decision. I am going to work on their behalf.

Is there a way I can politely point out to my client that their accountant, for example, is not an investment expert and that we have the credentials and the experience to make our own decisions?

Gerry S.

Dear Gerry,

Your experience is not an uncommon one. Unfortunately there is so much information available on how to invest or create a financial plan that too many people think they know enough to have a perspective! Conversely, tax law and legal documents are so convoluted that few people would claim any knowledge of how they operate.

As we know, having access to information and being an expert are too vastly different things.

Your concern could stem from one of three things – the other trusted advisor is diminishing the value you add and perhaps planting seeds that your mutual client is overpaying for your services, or your client will no longer need your services because they can get advice from their accountant, or the client will lose trust and go someplace else. These are all real threats in a situation such as you describe.