Financial advisers mustn’t let clients take control of the business relationship just because there’s been a downturn in investment markets.

That’s the message United States fund management marketer Don Connelly gave advisers at series of seminars run by Armstrong Jones recently.

"Every time there’s a down market clients suddenly start taking control of the relationship with their adviser," says Connelly, who is senior marketing officer for Putnam Retail Management.

Clients start suggesting things like waiting until the market bounceback before investing any more money, Connelly says.

"And advisers agree with them cause they don’t want to lose the business."

But allowing clients to take control sells them short, particularly as down markets are the time to buy assets at cheap prices.

History shows markets keep going up despite short-term hiccups, he says. The S&P 500 index has returned 11.3% compound growth, on average, in the 76 years to 2000. That’s despite bear markets in 21 of those years.

Getting clients to buy more assets while prices are cheap, or even to leave their money in a bear market isn’t easy, Connelly says.

Clients obsess about losses and check fund prices every day, despite swearing they’re long-term investors.

He offered advisers tips on encouraging people to stick with their investment plans during a down market.

Regular contact is crucial, he says. Lack of communication is the main reason clients give for breaking off their relationship with an adviser.

Advisers mustn’t feel guilty when clients lose money. Markets do go up and they go down and it isn’t the advisers’ fault.

Instead they must push home the message that now is the time to buy financial assets as the prices are cheap.