Compliance Update Round 2 - 2014

Key Learning Outcomes / Agenda Awareness of FCA Factsheets and post RDR responsibilities How your processes continue to meet RDR regulatory guidelines

FCA Factsheets FCA have published a number of regulatory reminders These refer to how firms can meet their RDR responsibilities There are no changes to your regulatory responsibilities

Disclosing Charges & Services Can your clients understand; Your charging structure? What and how they will pay? The scope of your services? The nature of your services?

Independent & Restricted Do you understand the definition of Independence? Do you use the enhanced suitability questionnaire to identify the Relevant Market? How do you disclose the nature of your restriction?

Platforms & Independence Are you Independent and do you use platforms? Do you consider off-platform solutions for every client? Do you use different platforms for different categories of clients? Does the Platform support your Independence?

Platforms and Supermarkets Are your permissions aligned to your client propositions? Have all relevant staff been trained on the Platforms tools? Are there any limitations on the Platform service? Platform Review – Sunset Clause April 2014

Attitude to Risk Do you adapt risk discussions based on a clients knowledge and experience? Is risk identified for each client outcome / objective? Do you recommend products / funds linked to agreed risk profile?

Assessing Customer Needs Do you record clients financial situation and investment objectives? Do all advisers use the same risk profiling process? How do you capture change in circumstances?

Know Your Client Do you fully assess affordability? Do you capture details of will arrangements? Confirm tax position? Are existing arrangements recorded and assessed?

Suitability Reports Does it use clear and plain language? Use customers own words and expressions Good practice – send reports before recommendation meeting

What your customers think Check with your PI insurer before sending Ask for their understanding of the investment risk Ask if they are clear why the product meets their needs / objectives

Any Questions?