As advisors, we recognize the value of client communication. It’s equally true that without it, the advisor-client relationship is more likely to suffer. In this post, I will discuss our revised communication policy. We’ll look at the reason behind it, what it will include, and how we will deliver it.
Clearly, trust is one of the most important factors in the client-advisor relationship. I say “one” of the most important factors because there are others that play a vital role in sustaining clients. For example, a client may trust us completely, but believe they have found a better way to invest (a subject for another time).
Regardless, trust is something earned over time. It is based on the behavior which is observed by clients and by comparing what we say with what we deliver. Because communication is one the most important factors in obtaining a client’s trust, we are revising our communication policy.
Our New Policy
Whenever a security is bought or sold in a clients account, they receive a confirmation statement. This statement discloses the security bought or sold and the quantity of the transaction. However, it does not explain “why” we bought or sold it. I believe there are times when this is important. Beginning in the fourth quarter 2018, and in certain cases, we will send an email to clients explaining the type of security (ex: category) and why we purchased or sold it at that time.
When Will This Apply?