Distribution Technology has upgraded its software to take new Financial Conduct Authority requirements on client understanding into account.
An investor experience assessment questionnaire has been added to Dynamic Planner, which is designed to ensure questions relating to the client’s engagement with their investments are included when selecting a risk profile.
The decision to develop the questionnaire followed the publication of the FCA’s thematic review in December, which said firms were failing to record customers’ investment knowledge and experience.
The Conduct of Business Sourcebook states that when making a personal recommendation or managing investments, a firm must obtain the necessary information regarding a client’s knowledge and experience relevant to the specific type of designated investment or service.
The change has been incorporated into both Dynamic Planner and the iOS Risk Profiler app.
Distribution Technology’s product manager Joshua Knight said with the Financial Advice Market Review report, the FCA and HM Treasury have clearly stated their belief in the importance of digital in the delivery of financial advice.
“The incorporation of the investor experience questionnaire is therefore an important step for DT as we continue to roll-out our programme of digitally-supported advice tools, and for our clients as we seek to help them ensure investment suitability in a fully complaint manner.
“We believe the questionnaire will assist advisers in having better, more informed conversations with their customers as they ultimately help them achieve their financial goals.”
The questions have been designed with input from existing users and the firm’s financial planning advisory board to explore any previous engagement the client has had with their finances.
