We use too much jargon in financial services

Last night I was a guest at the Professional Adviser Awards 2013 which took place at the London Hilton on Park Lane.

It was a great event, even though I didn’t win the Adviser Personality of the Year Award for which I had been nominated.

Our host for the awards was Jo Brand; the BAFTA winning English comedian, writer, and actress.

A large part of her act revolved around the confusion caused by all of the jargon we use in retail financial services.

Jo regularly asked the audience for help in understanding what terms such as RDR, SIPP and Wrap meant.

She also posed the serious question, “is Best Fund Manager over Three Years better than Best Fund Manager over One Year?”.

The world of retail financial services is full of jargon. In this sense, it is probably little different from any other trade or profession.

In our role as Financial Planners, we need to help our clients to cut through this jargon, and ensure they understand precisely what they are buying or investing.

The financial adviser who doesn’t take the time to cut through unnecessary jargon is doing a real disservice to their clients, increasing the chance that unsuitable advice will be accepted due to a lack of understanding.

Where the use of jargon is unavoidable, we always encourage questions.

There is no such thing as a stupid question. The only foolish question is the one left unasked.