PFS publishes first adviser guide in hub launch

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PFS publishes first adviser guide in hub launch

The Personal Finance Society has launched its adviser support tool the Good Practice Hub, featuring initially a guide on adviser research and due diligence on discretionary investment managers.

This guide, created in partnership with Diminimis, aims to provide clarity and guidance around the process of effective due diligence and research before appointing or working with a discretionary investment manager.

The PFS said this area can often be confusing for advisers as both they and the DIM are providing a service to the same client.

Ensuring a smooth, joined-up approach with a DIM that you can work alongside seamlessly is essential for a good client experience and this starts with a robust due diligence process.

Keith Richards, PFS chief executive, said: “Due Diligence will continue to be a key area of regulatory focus and is therefore an area where good practice guidance can provide greater practical clarity for advisers.”

Rory Percival, the Financial Conduct Authority’s technical specialist, said “We are looking at due diligence because when we look at the root causes of unsuitable advice, of all the cases we have looked at over the last four or five years pretty much 100 per cent of unsuitable advice came back with one of three answers; inadequate due diligence was one of those.”

The launch of the hub provides members with a central repository of resources to help benchmark and apply good practice.

At the end of last year, the PFS said it is to create a chartered ‘academy’ this year as one of its five main priorities.

Speaking to FTAdviser, Mr Richards said the profession must continue putting the public’s best interests at the heart of everything to ensure the sector as a whole is seen in a positive light.

donia.o’loughlin@ft.com