Back in February 2024, following concern from the FCA that ongoing advice services may not have always been delivered as they should have been, the regulator requested data from 22 of the largest advice firms.

The data survey asked firms to submit information about the number of clients who were due a review as part of their service – and out of that identified pool of clients, who actually received it as well as what happened when they didn’t. This thematic review stoked concern across the wealth management sector that a wider remediation cycle may be pending.

One year on, the regulator has released its findings.

Watch our Q&A video explainer now:

Important next steps

The findings state that the ‘vast majority’ of clients received their review, but there are important remedial actions for firms to take for the clients who didn’t. Plus, it poses the wider question of how firms should be liaising with clients who didn’t respond or declined to have their ongoing advice review.

Review the past, safeguard the future

It’s crucial to act now.

Obtaining MI for ongoing advice service clients plays a crucial part. Based on the FCA’s communication, we recommend this dates back to 2018. Firms should review their back book to ensure they have the right evidence on file, evaluate their client agreements and go back and check their fair value assessments for ongoing advice.

Going forwards, firms will need to ensure reviews are taking place when they ought to, that they have the correct processes in place to identify when they are due and are able to evidence the review outcomes.

We unpack the detail

To explain this in further detail, TCC’s Chief Product and Commercial Officer Garry Evans quizzes TCC’s Technical Director David Boyhan on the all-important findings.

Garry and David address topical issues including:

• What are the key findings from the review?
• What should firms do about disengaged clients?
• How should firms be considering quality and suitability of advice?
• How the review findings relate to the Consumer Duty
• How firms can stay compliant in the future

Watch the Q&A video now:

Contact us today to explore how we can empower your firm to deliver consistent and compliant ongoing advice reviews.