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SBG unveils adviser risk tool

The managing director of SBG said this would help advisers identify any gaps and to document the actions needed to mitigate the possibility of poor customer outcomes in the future.

This document can then be retained to give evidence to the FCA that their firm has considered conduct risk and acted accordingly.

Mr Gazard said: “With RCR the FCA’s focus has shifted and intensified to ensure that fair outcomes are delivered to customers.

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“There is a greater requirement on firms to look at risk from the customer’s perspective and ensure that good outcomes are being delivered and evidenced – both now and in the future.”

Adviser View:

James Litchfield, LCM Wealth Management, in Manchester, said: “It is good to see professional support services providers not only highlighting the emerging regulatory issues that adviser firms face, but also delivering the practical support on the ground that firms need in order to take preventative action as part of our strong commitment to demonstrating good outcomes for our customers.”

Risk tools

Conduct risk is viewed by the FCA as any current and emerging risks to consumers as a result of a firm’s behaviour.

There are strong links to treating customers fairly, as both are focused on customer outcomes.

While TCF tends to focus on risks that have been realised, retail conduct risk has a greater emphasis on identifying potential risks that have not yet resulted in poor outcomes, but could do so.