Being able to demonstrate robust, repeatable, and reliable processes is more important than ever now that the FCA requires you to carry out PROD reviews. It\u2019s as vital as being able to show your business is consistently providing good outcomes for clients and treating them fairly at all times.<\/p>\n
Adopting a centralised retirement proposition (CRP), a centralised investment proposition (CIP) and a centralised advice framework (CAF) could be key to achieving this.<\/p>\n
Read on to discover five ways these centralised systems could provide greater protection against complaints and potentially boost business.<\/p>\n
Centralised systems allow you to demonstrate to the FCA that you and your company has a robust, reliable, and repeatable process. This could be critical in meeting PROD guidelines and COBS 9.3.3, which requires you to consider all relevant client information before making a recommendation.<\/p>\n
A CAF ensures your business meets the 11 FCA core business principles and, in particular, makes sure that you put \u201ccustomers\u2019 interests\u201d first.<\/p>\n
The FCA knows that clients\u2019 situations differ, and so will check to ensure they have not been \u201cshoehorned\u201d into the same solution \u2013 especially where retirement is concerned.<\/p>\n
Having centralised systems, such as a CRP, means you can demonstrate<\/p>\n
that you\u2019ve collected all the relevant hard and soft facts, recorded them, and considered the client\u2019s individual situation.<\/p>\n
With a CIP, any investment or product you recommend will be from a centralised selection that has been assessed and found to be suitable for your clients. This is more likely to result in a good outcome for the client, reducing the chances of complaints or an FCA investigation.<\/p>\n
A centralised and consistent advice framework, such as a CIP, helps eliminate the chance of errors and omissions. This dramatically reduces the risk of a recommendation turning out to be wrong, or not be in the client\u2019s best interests.<\/p>\n
As such, complaints against you and your business are far less likely. Furthermore, it will mean happier clients, which could mean referrals and future new business.<\/p>\n
Each of the centralised systems require you to gather all the information needed by your paraplanners, allowing them to produce a clear and compliant suitability letter more quickly. This is because they will not need to chase you for missing information or clarification on key points.<\/p>\n
Because a CIP removes the need to undertake investment and platform research for every case, your business will be more efficient, providing quicker outcomes for your clients. This could mean you can arrange that all-important presentation meeting sooner.<\/p>\n
This dovetails into the above point of having a more efficient business, which allows you to concentrate on delivering what clients really want: good financial planning and a first-class service.<\/p>\n
This is likely to result in happier clients who then provide referrals, allowing you to build your business while reducing the potential of complaints.<\/p>\n
We have been helping businesses develop and integrate centralised systems for many years, and have tested many for robustness, reliability, and repetition. If you would like to learn more about how we can offer support in establishing centralised systems please visit our website or contact us. You can get in touch online or by calling 01472 728 030.<\/p>\n