Listen up class here are the subjects that will come up in your mocks’ is how the latest Dear CEO letter to IFA firms should be read. No precise detail but enough to get ready. As background the FCA is seeing an increasing number of cases where the actions of firms are resulting in
How does PROD differ from previous regulations and how ready are advisers for PROD?
Client segmentation is critical now that PROD sets out rules on selecting investment services for clients. Here’s an approach to consider.
“Research” -v- “due diligence” – What’s the difference?
We often hear about the need to undertake research and due diligence on the products and services recommended to clients, but what does that mean in practice? Specifically, is undertaking research the same as due diligence, or are the two different? And this is an important question, because there is confusion in the market about
IFAs must remember difference between due diligence & research
As the FCA’s suitability work continues, Chris Jones reminds advisers of their obligations to inform themselves and make informed recommendations You will often hear about the need to undertake research and due diligence on the products and services you recommend to clients, but what does that mean in practice? Specifically, is undertaking research the same
You can’t hide behind a top rating, if you don’t know how it’s made
Not all ratings are created equal. It is advisers’ responsibility to check their sources and make sure grading systems are reliable. The Financial Conduct Authority (FCA) has recently re-highlighted the need for advisers to understand the tools they use. Speaking at a conference in September, FCA director Debbie Gupta urged advisers to ‘consider the limitations
Ratings – Saints or Sinners
I often receive communications from discretionary managers with a multitude of badges, ratings and awards displayed prominently and think, sub consciously, ‘That’s nice – somebody likes them’. It gives me a warm feeling about the company, which I suppose is the aim. But what does all this bling actually mean? Ratings, awards and certification are
Chris Jones on Octo Members – galvanising adviser due diligence processes
Chris Jones talks to Lee Robertson of Octo Members about the increasing focus on process and due diligence to ensure good customer outcomes, what the regulator requires from IFA firms and how DD|hub can help.
“Agent as client” or agent for the client?
Last Thursday the PFS published a very detailed guide written by consultancy Diminimis on the potential issues arising from the “agent as client” basis on which some discretionary and MPS services are run. Many advisers will be on top of this but, for those who aren’t, the potential consequences are significant… Under the agent as
What is “due diligence?” Lessons from the Berkeley Burke case
Working in a regulated industry, the importance of “due diligence” is drummed into us. The FCA regard research and due diligence as core requirements to ensuring suitability, and that poor research and due diligence can lead to poor customer outcomes (TR16/1). So you might assume that “due diligence” is a clearly defined requirement of the
Pre packaged due diligence – Nirvana or sword of Damocles?
The ways to reduce the burden of due diligence are often crystal clear – provide a pre-packaged set of data that covers all the main points raised about due diligence. Or, even better, build an industry standard one! Of course, life isn’t that simple. Advisers want their own questionnaires for reasons discussed in my previous