In an Australian Securities and Investments Commission statement warning against an investment scam, Tanzer said consumers should immediately hang up if they receive an unsolicited call from a financial planner.
“Reputable financial services businesses do not cold call members of the public,” he said.
The comments have attracted a strong reaction from industry professionals, voicing their opinion on the Association of Financial Advisers (AFA) LinkedIn group page.
Greg Woods, director of dealer group Stratagem, said that while he personally dislikes cold calling, in business it “may be a necessity sometimes,” advising professionals using this tactic to employ manners and courtesy.
Former MLC adviser Arne Jesperson, who now runs a financial software business, said cold-calling had played an important role in his career.
“With over 40 years in the insurance and planning industry there are quite a large number of people who would not be quite so comfortable in retirement, and several families who have been able to keep their own home when their husband and father died, because I cold called,” he said.
“It is my experience and I suspect that of many others, that very few people take action without being prompted by a polite and friendly call,” he added. “I believe it would be a shame if cold calling were ever legislated against.”
A similar sentiment was expressed by Charterhouse senior financial planner Wayne Stammers, who said “most financial services organisations began with some element of cold calling”.
“Of course a regulator is going to come out and say that about cold calling,” he added.
More broadly, business consultant and former planner Manny Mezzasalma said cold calling should form a part of any good ‘practice marketing plan’.
The trend amongst most of the regulatory bodies is to curb entrepreneurism and therefore stunt growth. Whether you choose to cold call or not, it should be up to the business how they market. Its not as if you are selling a set of steak knives. The prospective client still has to take a seat in front of you and follow due process.
As I write this I have seen three infomercials on gaining life insurance through non advisory, tick the box, minimal underwriting providers. Isn’t this a form of cold calling and yet ASIC seem awfully quiet on this front.
Slowly but surely we are being squeezed into a corner until it will be almost impossible to conduct business.
I looked at our overheads this year and low and behold, we are now spending more on compliance, insurance and legal than we do on marketing and recruitment.
ASIC seems determined to kill off those of us who are non dealer group aligned.
“mmm I wonder if Mr Greg Tanzer has ever owned a business, or more importantly started one from scratch – where cold calling done the right way is an integral part of business marketing.
The proof is in the pudding so to speak… Mr Greg Tanzer Greg spent nearly 30 years in investment banking at Socit Gnrale in Australia, Asia, Europe and the Americas. More recently, he was the Managing Director and Global Head of Securitisation, based in New York.
Never owned a business, never started one from scratch – one has to question – what does this man know!!? “