Applied Financial Planning
Realising managed accounts benefits
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Making the most of introducing managed accounts into a financial advice practice will take a journey of two to three years.

It's a process that involves defining the firm's value proposition, reimaging what you want the business to look like, as well as re-engineering business processes to support the firm's new business structure.

Firms that undertake this process methodically, strategically and carefully have the potential to reap substantial benefits, including higher profits, improved client relationships and greater efficiencies across the practice. This paper looks at the steps needed to realise the benefits of managed accounts.

A step-by-step approach
A step-by-step approach involves the following:
1. re-imagine your value proposition
2. re-engineer processes
3. bring clients along the journey
4. take a new approach to client service.


1. Re-imagine your value proposition
The first part of the process to introduce managed accounts into your business is to define or re-define your value proposition. This involves thinking through the value your business delivers customers, the need it meets or the problems it solves. Then it is important to link this value to your service offering.


2. Re-engineer processes
It is essential to re-engineer your process to fully realise the benefits of managed accounts. Importantly, in most practices it will be necessary
to transition the entire client base to managed accounts.

This is because having a foot in the traditional advice world and the managed account world will only result in a duplication of work and the firm will
miss out on the managed accounts' efficient efficiency dividend.

Lane Financial is one practice that has transitioned clients to managed accounts and appreciates their advantages for the business and
its clients. "We benefit from lower record of advice (ROA) requirements, having to buy only one asset and less form filling," says senior financial adviser Morgan Collins.