The importance of a well thought through and consistent investment proposition that meets the needs of all a firm's clients cannot be overstated from a regulatory perspective.
Perhaps more importantly a properly designed proposition can ensure the best outcomes for your clients, increase the efficiencies within your business and reduce the risk of complaints in future. A well put together approach to investment will save you time, enable your clients to more easily understand recommendations and provide peace of mind to both!
Many advisory forms use third parties to provide panels of funds or to put together model portfolios. These approaches can make a lot of sense and enable advisers to see more clients, but it is crucial to remember that it is the advisory firm’s sole responsibility to ensure that the solutions are suitable, have been compared with the rest of the market and are regularly reviewed.
If you are in any doubt you should consider asking yourself some of the questions below.
Meeting individual client needs
- Identify the different investment needs of different client segments? For instance those who receive regular reviews and those who don't.
- Offer a different solution to clients with different investment terms?
- Offer different solutions to cater for different levels of investment knowledge and experience?
- Cater for clients with ethical preferences.
- Take account of the client's individual tax position and changing tax legislation? For example would recommending multi asset fund cause the loss of tax free dividend and fixed interest entitlements?
Risk
How are the investment recommendations aligned with the client’s risk profile? How is risk ‘measured’? Do you employ a methodology that you understand and could explain?
Reviews
How often do you review your investment proposition and is this documented? How do you carry out the review and is it truly whole of market?
What due diligence have you carried out on your investment providers?
Whole of Market
Do you consider the full range of retail investments as an independent firm? Can you explain and have you documented why you have excluded certain investments like Investment Trusts, passive funds or ETFs?
When did you last compare your investment proposition with the rest of the market?
How we can help
ComplyMe can sense check your current investment proposition and provide you with a report summarising how it works and meets your clients’ needs as well as recommending any changes that might be needed.
Alternatively we can help you modify your existing proposition or design a new one to best meet the needs of your clients.
Contact us or complete the enquiry form for a free consultation.
Related services
Pre-Approval of Advice
ComplyMe have extensive experience in pre-approving advice, giving you the comfort that your files are being reviewed by suitably qualified individuals. As part of this service we will provide a report with our feedback including guidance and recommendations where appropriate.
Due Diligence
Due Diligence is about going beyond just comparing charges or referring to industry awards. It is about a more in depth assessment of providers looking at areas such as financial strength and viability, service and support as well as areas like Risk Management, Data Protection and Disaster Management.
Complaints Handling
We can handle the complaints process from the outset and where appropriate undertake the necessary redress calculations.
Compliance Health Check
The Compliance function is becoming ever more complex and more firms are under scrutiny and intervention from the regulator.
ComplyMe can undertake a compliance health check and help you protect your business.
