Here’s how Blyth-Richmond came about…
Back in the very early 1980s I was a director of a successful British company, earning a good salary, company car, final salary pension scheme and lots of perks when one day I felt a burning desire to set up on my own. It came out of the blue and within days, nothing was going to stop me. I had the opportunity to establish my business in partnership with an illustrious lady who owned a beautiful country house, which she had developed as a conference centre. This seemed a brilliant idea – share the profits and benefit from the superb location and all of the contacts she was going to present to me. Soon after, I realised that sharing profits with a non-active partner was not a good business proposition. How was I going to break the news to her? A few days later, to my great relief, she telephoned to say that she felt duty bound to help other members of her large family. Imagine the dilemma I could have been left with… she had ten children!
Failure was not an option. I had children at school, a family home and all of the usual commitments, so I would have to work really hard. But at the same time, I took another enormous gamble. I decided that I would set up the first fee-based investment advisory operation in the UK.
It all started because a friend of mine, a very successful entrepreneur, told me that he would invest his family assets with me on the understanding that I would never receive commission. He would pay me a fee and I would provide an unrestricted conduit to investment strategies. At first I was very fearful, but then it became apparent that not only did fee-charging open doors for him, but for me as well. It also meant that I had to embark on a considerable learning curve, familiarising myself with a far wider range of concepts, strategies and ideas, which applies right up to the present.
The business has developed and now my daughter works with me. We have generated superb client relationships that have remained loyal for years, many of them having been with me since the day we started.
Here are five reasons why fees are beneficial:
1. Diversity. By definition, charging a fee implies working from a blank canvas – what is available and what suits you.
2. Trust. Paying an agreed fee means you create a contract between you and the adviser. You are paying for advice.
3. Commitment. Fees increase the commitment of the adviser and his/her responsibility towards you. After all, why would anyone pay a fee, simply to be sold a product?
4. Professionalism. Fees imply a duty of care. If you are paying for advice, your adviser has obligations as per workerscompcalaw which have to be met.
5. Expectations. This applies to everyone whether an entrepreneur, professional adviser or business manager. You haven’t the time or perhaps even the interest, in identifying what is appropriate for you. By paying a fee, you raise the bar. You expect to be told what really is out there!!