REGULATORY EXPERTISE

Here we look at 10 key steps to help advice firms maintain adviser competence and deliver those good outcomes for their clients :

Monthly client reviews : These reviews involve regular assessments of the quality and suitability of client advice provided by financial advisers . By scrutinising client files , firms can monitor advice standards , manage risk , identify areas for improvement and offer targeted support to advisers . This activity helps maintain consistency across the advisory team and good outcomes for customers .

KPI review and analysis : Key performance indicator ( KPI ) reviews and analysis allow firms to evaluate adviser performance against predefined metrics such as client satisfaction , revenue targets and compliance adherence . By tracking KPIs , firms can identify high-performing advisers , areas for improvement and potential training needs . This data-driven approach enables firms to make informed decisions and allocate resources effectively to support adviser development . This is also a key data point for Consumer Duty evidence .

CPD monitoring : Continuing professional development ( CPD ) monitoring ensures advisers engage in ongoing learning and skill enhancement to remain competent in their roles . By monitoring CPD activities , firms can ensure a high level of technical competency and support advisers in staying abreast of industry developments . CPD monitoring also facilitates the identification of emerging training needs .

Adviser testing : Periodic testing assesses advisers ’ knowledge , competence and understanding . Testing ensures that advisers possess the necessary skills and expertise to provide quality advice to clients . Results from adviser testing inform training priorities and help firms maintain a high standard of professionalism and competence across their advisory teams .

Regular one-to-one reviews : Regular one-to-one meetings between advisers and their supervisors provide an opportunity to discuss performance , address concerns and set development goals . These meetings foster open communication , enable feedback exchange and facilitate personalised support for adviser growth . By conducting regular one-to-one meetings firms can track progress , identify areas for improvement and reinforce the importance of training and competence .

Skills assessment or observation : Direct observation or skills assessments evaluate advisers ’ performance in realworld scenarios . This hands-on approach allows firms to assess practical skills , decision-making abilities and adherence to procedures . Skills assessments provide valuable insights into advisers ’ strengths and weaknesses , informing targeted training interventions and enhancing overall competence .

Training needs analysis : A systematic assessment of training needs identifies potential gaps in knowledge , skills and competencies , and allows bespoke development plans to be put in place . By conducting a training needs analysis , firms can tailor training programmes to address specific areas of improvement and support adviser development effectively . This proactive approach ensures that training efforts are aligned with business objectives and regulatory requirements .

Development plan : Based on the findings of training needs analysis and performance evaluations , a development plan outlines specific objectives , activities and timelines for adviser growth and improvement . Development plans provide a roadmap for CPD , setting clear goals and milestones for advisers to achieve . By implementing personalised development plans , firms demonstrate their commitment to supporting adviser progression and enhancing overall competence .

Credit check : Conducting credit checks helps firms assess advisers ’ financial stability and integrity . This screening process ensures advisers maintain good financial standing , minimising the risk of potential conflicts of interest or unethical behaviour . Credit checks contribute to the overall integrity and professionalism of the advisory team , enhancing client trust and regulatory compliance .

Annual fit certification : Annual fit certification verifies advisers ’ ongoing fitness and propriety to perform their roles effectively and ethically . This certification process assesses factors such as competence , integrity and financial soundness , ensuring that advisers continue to meet regulatory requirements and uphold professional standards . Annual fit certification reinforces the importance of ongoing training and competence within FCA regulated firms , promoting accountability and regulatory compliance .

Whilst all the above can impact the time available for day-to-day management and advisory activities by employing technology or engaging third-party support , firms can reduce this burden and build a robust framework to follow . Implementing a strong T & C programme is fundamental to ensuring suitable advice and good consumer outcomes . That initial work building and finessing your programme at the outset can mean a lot of time and headaches are saved along the way . Hopefully the points above will help you to create a structure with which to get started , but we can help you get this right first time , manage risk , increase staff retention , deliver good consumer outcomes and bring peace of mind in the long run .

KEEPING UP TO SPEED WITH THE INTRICACIES OF THESE EVER- CHANGING REQUIREMENTS AND AVOIDING INADVERTENT BREACHES AND COMPLIANCE GAPS CAN FEEL LIKE A FULL-TIME JOB IN ITSELF .

To find out more about how we can help you strengthen your T & C compliance plan , get in touch with the Business Support team at businesssupport @ compliancefirst . co . uk or on 0141 616 4161 .

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