The Financial Conduct Authority is not prescriptive about what is a reasonable amount of due diligence.
But a key takeaway from the Financial Conduct Authority’s recent probe of adviser’s due diligence processes is “client is key”.
By making sure everything you do is customer-centric, i.e. all research and due diligence is effected on their behalf, advisers should be confident they will not incur the wrath of the regulator.
Yet an adviser still has to make a living – how do you make sure you recommend the best solution to your client and make a profit?
This guide will explore regulatory requirements for due diligence, whether you can rely on a provider’s marketing material and risk assessments plus what the repercussions are of your due diligence processes not being up to scratch.
Supporting material produced by; David Heffron, head of financial services regulation at Pinsent Masons; Keith Richards, chief executive of the Personal Finance Society; Richard Nuttall, head of compliance policy at Simplybiz; Aileen Lynch, head of technical for SimplyBiz; Ben Wright, head of technical services and research for Tenet; and Sheriar Bradbury, managing director of Bradbury Hamilton.