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Crypto education a value-add for clients

Crypto education a value-add for clients

Yes

The growing popularity of cryptocurrency assets among the average investor presents an opportunity for advisers to add value to their clients through education, according to Beacon-aligned practice Voyager Wealth Management.

Speaking to ifa, Voyager director Sarah Nulty said providing clients with educational materials on the risks of cryptocurrency investment can help advisers deepen client relationships and improve their own advice offering.

“Clients are often getting themselves into trouble because they are overconfident and think they understand the investments they’re dealing with,” she said.

“Additional client education through newsletters, information sheets and seminars for clients and family/friends – as well as extra precautions from the advisers in making file notes and gaining email confirmations – is strengthening our value to our clients, their belief in our experience and ability to be a knowledge source for them, and protecting ourselves.”

Ms Nulty, whose recently submitted master’s thesis addresses cryptocurrency issues, said educating clients was also important in terms of protecting them from poor or risky decision making.

“We have a responsibility as advisers to share the knowledge we have or have access to, to keep the public safe if possible and let them know what the risks and benefits are in this space,” she said.

“Easy-to-understand information and research should be readily available for clients, both in the office as well as via the website, so clients who don’t want to address this with their adviser can still access quality information that brings everything together for them.”

Advisers should also receive training and education on cryptocurrencies and how to speak with clients about them in an informative and appropriate manner, Ms Nulty added.

“It is easy, when you are very passionate about what we do and our role in our clients’ lives, to bring emotion into our communications in trying to get our clients to listen to us,” she said.

“Additional training should be mandatory for all advisers within the practice on this asset type, and also on effective communication skills and behaviour when dealing with clients in these types of situations.”

ifa will be covering the relationship between cryptocurrencies and financial advice in more depth in its April print issue.

 

Crypto education a value-add for clients
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