REGULATORY EXPERTISE
Making good outcomes more cost-effective
By delivering sound governance and independent analysis within a repeatable , technology-led process , our risk-controlled services help you deliver good outcomes at a lower cost .
Fabian Wiesner
Head of Distribution Partnerships Simplybiz
Alexander McGregor
Head of Policy Simplybiz
The Consumer Duty marks a significant shift in how financial advice firms must approach their responsibilities . No longer seen merely as distributors of products and services , firms are now regarded as “ manufacturers ” of their advice process . This new perspective places greater emphasis on why a firm ’ s advice process is designed in a particular way and how it then ensures good outcomes for clients . Fair outcomes are no longer sufficient . This shift in perspective is more than just cosmetic . Depending upon the existing shape of the firm , it can mean an overhaul of how that firm does business . At a time of political and economic tumult , when firms and advisers would like to be spending as much time as possible engaging and reassuring their customers , any additional time burdens are unwelcome . Thankfully , there are solutions out there that utilise technical expertise and the latest technology to minimise the administrative and regulatory burden whilst enhancing the firms ’ ability to deliver good outcomes to their clients .
Outsourcing research without losing control
Consumer Duty ’ s requires firms to revisit and refine their advice processes and be able to evidence the delivery of good outcomes for clients . This means financial advice firms must not only consider the suitability of their investment recommendations but also be able to justify the decisions behind them . With riskcontrolled services , this responsibility is supported by a robust research process , conducted through the Simplybiz Investment Committee ( IC ) which meets quarterly to review and document findings . This panel of seasoned industry experts includes research and ratings from Defaqto and Hymans Robinson within its process , and documentation to give you a robust and reliable foundation to your advice . Our risk-controlled services help advisers meet their due diligence obligations by providing a clear , repeatable framework . The quarterly IC updates offer ongoing research , allowing firms to demonstrate that their advice is grounded in rigorous analysis . This process helps advisers ensure that investment risks are aligned with the client ’ s agreed risk appetite . While no investment is risk-free , a structured framework ensures that the risks are well understood and suitable for each individual client . Furthermore , risk-controlled services help firms meet the FCA ’ s expectations around product governance . For example , the FCA now requires firms to assess and document not only the suitability of products for their target market but also identify those for whom a product would be inappropriate – what the FCA refers to as a negative target market assessment . The distinct workflows for accumulation and decumulation within our risk-controlled offering ensure that products are selected with a client ’ s life stage and financial objectives in mind , minimising the risk of unsuitable recommendations .
Research , evidence , and compliance
A fundamental aspect of any advice process is conducting thorough research and due diligence on investment strategies .
Under the Consumer Duty , the FCA expects firms to be able to prove that their products and services meet the needs of their target market , and that appropriate research has been conducted .
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