Turning Mistakes into Lessons

As a financial adviser, the fear of making mistakes looms large, as a profession I think we can all relate to this after all the changes, legislation and negative media. We strive for perfection, ensuring we are compliant, the research is done, cross checking scenario’s, second guessing ourselves and even asking ourselves “Am I qualified and competent enough to give this advice” which is what we are required to do each and every time we give advice. However, despite our best efforts, mistakes can still occur. It's how we handle these mistakes that truly defines us and presents opportunities for growth.?

Allow me to share with you my most significant mistake, which ultimately became one of my greatest lessons. In 2022, I took on a couple seeking financial advice. Our initial meetings went smoothly, but as our engagement progressed, unforeseen challenges arose. The clients' frequent absences and delays in decision-making added complexity to the process.?

Then came the pivotal moment. The clients decided they were ready to proceed, the Friday before I was leaving on a family trip away. I? wanted to get this over the line as it had been a year since our initial engagement. With no paraplanner available I decided do the insurance application calls and write up the Statement of Advice (SOA). Unfortunately the SOA was inadvertently overwritten with errors, the software I used to create the SOA was still being built so my template was quite a mess. I edited it and thought I had saved the edited version, however then saved the unedited version over it – to this day I don’t know how I managed to do this, however so I only had my laptop (not two screens), and quite a lot of distractions ( my parents and aunty had arrived the day I was working on this. Unaware of the mistake, I emailed the SOA to the clients, only to realise my blunder upon returning from a much-needed break. The realisation hit hard, compounded by the clients' loss of confidence in my abilities.?

Facing the consequences head-on, I rectified the error and resubmitted the corrected SOA. However, the ordeal didn't end there. The clients refused payment, prompting me to pursue recourse through legal channels. As advisers we must capture as much information about our clients as much as possible, file note our conversations (and I go as far as recording every zoom meeting), with safe harbour and best interest duties the research required to deliver advice at times seems overkill but necessay??

?Armed with meticulous documentation of my work and a newfound appreciation for compliance protocols, I navigated the legal process which went in my favour. Although, the clients have tried to damage my repution with poor reviews and complaints, this is not the point of the story.??

Through this experience, I have learnt several invaluable lessons:?

1. Value Your Time and Expertise: Recognise the worth of your skills, experience, and the effort invested in delivering quality service and advice. Although these clients threatened to post negative review and even take the matter to AFCA if I persued payment, I did so anyway. If I were a lawyer, a doctor, an accountant or any other professional payment for service would be expected, my advice and the work I did leading up to this was no exception.?

2. Embrace Compliance: While compliance procedures may seem burdensome, they serve as a safeguard. Comprehensive documentation and adherence to regulatory standards bolster credibility and provide evidence of due diligence and professionalism – this honestly was a saving grace for me during this time as it demonstrated the work I did for the client leading up to providing the statement of advice. There was no case for AFCA, however I had confidence that there was no wrong doing on part – just a human error of sending the wrong attachment.?

3. Accept Imperfection: Mistakes are inevitable, even for seasoned professionals. Embrace humility and view mistakes as opportunities for growth and refinement.?

4. Invest in Infrastructure: Equip yourself with tools and resources, such as improved templates and support staff, to streamline processes and mitigate the risk of errors. (One key lesson in this was to have a solution if my paraplanner was not available, another was a vetting process – which ensures that documents are checked prior to being emailed).?

5. Learn from Setbacks: Every setback offers a chance to reassess and improve. Reflect on past mistakes, identify areas for enhancement, and implement proactive measures to prevent recurrence.?

Looking back, while the experience was humbling and challenging, it catalysed personal and professional growth. I emerged stronger, armed with a renewed commitment to excellence, added additional vetting within my process and had a greater respect for our compliance regulations.?But above all, I valued the high standards of work I deliver and have a greater appreication of my time and experience as a financial planning professional.?

By embracing setbacks as opportunities for learning and improvement, we pave the path to success and fortify our resilience in the face of adversity.?

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