2015 is going to be a big year for compliance, the adviser service provider has revealed.
Mr Timmins said the FCA have had a few years of ‘bedding in’ and reviewing how advisers are adapting to life in the post-RDR world.
But he said their recent thematic reviews suggest that they are about to start toughening up.
He said: “All three parts of the regulator’s thematic review have stated that they’ve been unsatisfied with the way in which the majority of firms have adapted in line with RDR regulation, particularly in respect of charging structures and ongoing services.
“Adhering to the regulator’s rules is always important, but particularly at this time, when we know their gaze is focussed upon financial advisers.
“As the burden of regulatory responsibility upon advisers gradually increases, as you would expect, I wholeheartedly recommend working with a compliance consultant or support provider.”
However, Mr Timmins said there will also be an increased FCA expectation for firms to have completed due diligence on the compliance consultant they employ.
He said this is a relatively straightforward piece of work to undertake, which could not only save advisers huge amounts of time in the long-run but will also give them peace of mind that they are receiving high quality and reliable guidance.
Looking back at 2014, Mr Timmins said as well as being a great year for the support services provider the firms Simplybiz’s serve appear to be operating in a much healthier marketplace than a few years ago.
He said: “I don’t want to make assumptions about the state of the advisory market overall based on our business alone, but all indicators would suggest that we have turned a corner into more positive times.”
emma.hughes@ft.com
