REGULATORY EXPERTISE
Our risk-controlled services simplify this by providing a wealth of research that firms can use to support their advice . The regular investment committee reviews offer independent , critical analysis of the investment options available , ensuring that each recommended product is well-documented and benchmarked against optimal standards . For financial advice firms , this provides crucial evidence that their advice is not only suitable at the outset but continues to be appropriate over time , with updates available to adjust as markets or client circumstances change . RC also provides governance over the entire advice process , from product selection to ongoing monitoring . This level of oversight not only supports compliance with FCA requirements , but also helps firms streamline their operations , making it easier to deliver consistent , high-quality advice across different client segments .
Meeting retirement income needs
The FCA ’ s recent thematic review ( TR24 / 1 ) on retirement income advice highlights the importance of tailoring strategies for clients in the decumulation phase . Too often , firms have failed to differentiate their advice for clients approaching retirement , leading to suboptimal outcomes . Risk-controlled services directly address this challenge by offering specific solutions for both accumulation and decumulation clients . The risk-controlled framework ensures that investment selections are appropriate for the differing needs of these client groups , aligning with the FCA ’ s best practice guidelines from TR24 / 1 . For example , the risk-controlled system ensures that accumulation products are not mistakenly recommended to clients who are in the decumulation phase of their financial journey . The focus on consistency within the RC framework is particularly beneficial here . By employing tools like the retirement income calculator built into Defaqto Engage , advisers can ensure that their advice is not only appropriate for a client ’ s risk profile , but also consistently applied across all similar cases . This minimises the risk of poor outcomes and strengthens the firm ’ s ability to meet the FCA ’ s expectations for providing good advice .
Enhancing consistency and efficiency
Consistency in advice is a core theme throughout both the Consumer Duty and TR24 / 1 . Firms that lack a clear , repeatable process for providing investment advice are more likely to see variation in the quality of their recommendations . This inconsistency can expose firms to regulatory risk and lead to poor client outcomes .
Risk controlled services offer a solution by streamlining the advice process , ensuring that all advisers work within the same structured framework . The quarterly investment committee reviews and ongoing due diligence provide a foundation for consistent advice , helping firms avoid the pitfalls of fragmented decision-making . This not only de-risks the business but also makes the advice process more efficient , allowing firms to focus on delivering tailored , high-quality recommendations without the burden of repeated ad hoc research .
Independent expertise and business security
While the firm remains ultimately responsible for the advice it provides , risk-controlled services enhance business security by offering independent , expert analysis . The investment committee reviews all investment options available through the risk-controlled service , evaluating each partner without bias and against a benchmarked standard . This independent scrutiny helps ensure that the advice provided is suitable , thoroughly researched and free from conflicts of interest . Firms using risk-controlled services can also demonstrate a well-documented advice process , which is critical for both regulatory compliance and client trust . In the event of a challenge or complaint , the documented evidence from its research and due diligence can serve as a valuable safeguard , helping protect the firm from claims of unsuitable advice .
A comprehensive solution for meeting your Consumer Duty requirements
In the evolving regulatory environment , financial advice firms must not only ensure they provide suitable investment recommendations , but also that they can demonstrate the processes behind their advice . Risk-controlled services provide a robust solution to these challenges . By offering governance , independent analysis and a structured , repeatable process , our unique risk-controlled services enable firms to deliver consistent , high-quality advice that meets the FCA ’ s heightened expectations whilst securing their business against potential claims of unsuitable advice .
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