The Henley Fair Index, as the new tool is called, uses a number of “key metrics” for measuring adviser performance that were included in a list of recommendations for improving financial advice that was published by the Monetary Authority of Singapore in January, following the completion of a review by a panel that was set up last year, according to Henley Group chief executive Antony Michell.
The idea that Singaporean financial advisory firms consider adopting “a balanced scorecard approach” to assess their performance, and incorporate certain non-sales key performance indicators into their overall remuneration structures, was, in fact, among the recommendations made by the Financial Advisory Industry Review (FAIR) panel tasked by the MAS with coming up with suggestions as to how the interests of advisers and their clients might be better aligned, Michell added.
Initially the Henley Fair Index will be used internally by the Henley Group to assess the performance of its own advisers, but the company believes it might one day be used by prospective clients who are shopping for an adviser, to help them rate the quality of advice they have been receiving from other financial advisers.
“We have spent a great deal of effort recruiting and training experienced advisers, who have all the skills, knowledge and resources to provide quality long-term advice,” Michell said.
“Introducing a tool that can be used to ensure that we maintain the quality of our advisory process makes complete sense and will, I am sure, make sense to our clients and prospective clients.”
Among the elements of adviser performance measured by the new Henley index, Michell said, are the “suitability of advice” for the individual in question, and the provision of “a quality after-sales service”.
Established in 1990, the Henley Group is among Asia’s largest independent financial advisory and wealth management firms, with some 80 employees and around 4,000 clients. In addition to Singapore, it has offices in Hong Kong and Shanghai.
Consultation under way
As reported, the MAS is currently consulting on the FAIR Review panel’s 28 key recommendations, with a deadline for comments of 4 June.
