This data survey aimed to uncover how many clients were scheduled for a review, who actually received it, and the outcomes for those who did not.
This ignited a wave of apprehension throughout the wealth management industry, hinting at the possibility of an impending, broader remediation phase.
Fast forward a year, the regulator has unveiled its insightful findings.
Taking action
The findings state that while the majority of clients did receive their reviews, there’s crucial remediation due for those who didn’t. Additionally, it raises the critical issue of how firms should engage with clients who either didn’t respond or opted out of their ongoing advice review.
Reflect on the past, secure your future
Gathering MI for clients receiving ongoing advice is essential. According to the FCA’s guidance, this should be traced back to 2018.
Firms should revisit their back book to confirm they have the appropriate evidence, reassess client agreements, and verify their fair value assessments for ongoing advice. Moving forward, it’s crucial that firms conduct timely reviews and establish robust processes to pinpoint when these reviews are due – and evidence of the outcomes of the reviews.
Delving into the details
To explore the implications for wealth management firms, Recordsure’s Chief Product and Commercial Officer, Garry Evans, caught up with our sister company, TCC‘s Technical Director, David Boyhan, to unpack the important next steps for firms.
Garry and David address topical issues including:
- What are the key findings from the review?
- What should firms do about disengaged clients?
- How should firms consider the quality and suitability of advice?
- How the review findings relate to the Consumer Duty
- How firms can stay compliant in the future
Watch the full video here:
Firms can enhance their suitability reviews by integrating AI into their workflow. Recordsure AI automates document checks, notifying you only when evidence is missing so advisers can intervene. Contact us to see how Recordsure AI can support your regulatory needs.
