In conversation with...

Geraint Davies

Managing Director, Montfort International

What is the single biggest challenge facing your advice business over the next 12-24 months?

We’re wondering how we’re going to cope with building this presence regarding the domestic and non-domestic characteristics. The penny is dropping with just a few advisers, but when it drops, it’s nuclear.

What’s the biggest threat or opportunity for advice businesses in the next five years?

I fear for the advisers who haven’t got a proposition other than getting funds under management, because those funds under management will disappear. Customers are going to start saying, “I can do this myself using AI,” unless advisers have a superior proposition that offers value. We were speaking to a fund manager this week who wanted advice. He said we were different, and he said fund managers are two a penny.

If you could solve one major issue in your business immediately, what would have the biggest impact?

Finding people who can work in our team and not get stuck in their ways.

What are your clients most worried about right now, and how has this changed in the last year?

Inheritance tax. We have 35 different solutions.

What’s your most effective way of reassuring anxious clients during periods of uncertainty or market volatility?

What’s new? The secret is to prepare them when there is little volatility - the calm before the storm. Give parallels, like football sides. No side has always topped the Premier League. No rugby side dominates, and no athlete always wins the competition. You will inevitably come second, third or fourth.

How important is intergenerational wealth transfer in your planning for clients? Are you engaging with your clients’ children or estate beneficiaries?

The Family Board Meeting - brilliant for referrals.

How are you using AI in your business, where are you finding it adds the most value?

The work we do is specialist, so we’re looking to use AI to check the work we do. We are going to be loading 500,000 research and technical documents that we’ve accumulated over time to create a working model, so if anything happens to me, that knowledge doesn’t disappear. We’re not sure how we’re going to use these yet, but they have huge value.

How do you attract early-career financial advisers into your team?

Through university placements. They will be in their final year, and we expect them to become qualified advisers.

What training or development programmes do you have in place for new or emerging advisers?

We’re developing the ME principle. Sales skills are crucial. You can buy technical information in. Selling skills you can’t buy in. We are looking at using university graduates, and the placement students have been invaluable. Everybody has been trained in delegation. For example, an adviser who manages their time may only be 20% productive and is doing 80% of what could be delegated. If you increase the 20% to 40%, then you will double what they bring in in business.

What support systems (e.g. mentoring, coaching) do you provide to help emerging advisers succeed?

Time management allows you to do coaching. We were dealing with this 30 years ago through mentoring.

What one piece of advice would you give someone considering a career as an adviser?

That they need to be a salesperson.