Free Text in Suitability Reports......

THIS IS AN ADDITIONAL EVENT TO OUR USUAL PROGRAM – SO PLEASE NOTE THE VENUE AND TIMING

The FCA has, once again, highlighted that they prefer to see Suitability Reports which have been specifically tailored to each individual client. They say that personalisation of Suitability Reports is the ‘best defence' against regulatory action over centralised investment propositions.

They consider it to be good practice to include a clear summary of the client's objectives in the Suitability Report and to explain how the recommendations meet these objectives.

The regulator also suggested that firms that use fact finds to record “know your customer information” should not just rely on a standard list of questions but also use free text or notes sections to record client specific information and objectives.

The FCA understands that a standard, consistent process can be beneficial when advising clients. However, it is crucial is that files show that the objectives reflect the needs and requirements of each individual client, rather than being ‘solutions based'.

This meeting will include group exercises looking at good and bad examples of fact finds and suitability reports. There will also be a demonstration of the new version of the PPOL reporting system which incorporates the FCA recommendations, following Paradigm guidance.

Learning objectives
To understand the FCA requirements for personalised suitability reporting, to recognise good practice and to identify how improvements to the reporting process can be made.

About the Speakers

Graeme Stewart – Paradigm
Graeme is the Compliance partner with Paradigm, where he manages a team of compliance consultants enabling them to deliver pragmatic compliance support, face to face, to their Partner firms. His team works closely with financial planners, particularly where have been asked to participate in thematic reviews or to prepare them for FCA visits.

Prior to joining Paradigm at launch in 2007, John managed a team of Compliance Consultants for Sesame.

John Delaney – PPOL
In 2003, John established a paraplanning company with a plan to develop a suitability report writing product. After 3 years of intensive development, this came to fruition in 2008 as Paraplanning Online (PPOL). A continuing programme of improvements and new features keeps it cemented as the market leader. John brings 13 years of management experience in financial services and 5 in customer focused business to the table.