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Aberdeen-based Johnston Carmichael has topped a ranking of the UK’s best-performing financial advice firms for the third year in a row, beating competition from larger, national companies in a poll carried out by FT Adviser, a sister publication of the Financial Times.
The publication’s Top 100 Financial Adviser rankings have been running for nearly 30 years. They recognise firms that have successfully brought in new business while keeping existing clients happy. The methodology, in collaboration with ISS Market Intelligence, is refined each year to highlight what sort of service and value for money clients should expect from financial advice firms in the UK.
This year, companies that took in at least £185mn in new client money were considered for the longlist of 150 businesses, which were then scored on various criteria, including client retention, longevity and whether they or their advisers had been given a charter by an accrediting body. Since all IFAs must have a Level 4 diploma, the minimum requirement set by the Financial Conduct Authority, the report also took account of those advisers with higher-level qualifications.
The top 20 firms were then ranked according to their scores, with the next 80 companies listed alphabetically. “Stability, experience and a commitment to professionalism and client focus are key”, ISS said.
Johnston Carmichael maintained its position at the top of the rankings for three years in part because the company has held on to its highly qualified and chartered advisers.
Craig Hendry, the firm’s managing director, said: “We need to look after our teams and make sure we create the right culture and environment for the team to succeed. Keeping that talent in-house will help provide the best possible outcome for clients.”
Building up a relationship of trust is often cited as an integral part of client retention.
“It’s crucial to build trust while offering a service that’s clearly defined and stands out from the rest,” said Gillian Hepburn, commercial director at Benchmark Capital, which made the best 100 list this year but missed out on a top-20 ranking. “There’s not one single way to do this, but a combination of being clear and transparent about what type of clients you can help, the benefits, and how much it will cost them is a good place to start.”
Simoney Kyriakou is editor of FT Adviser