Financial Ombudsman Service  

Former Fos manager on what makes a good suitability report

He said if advisers wanted to add detailed risk disclaimers an appendix was the best place for that.

4 Cut the jargon

Mr Wells said: “A big thing I find is that the report in no way reflects the way the IFA talks.

“Advisers seem to be able to simply explain the reasons behind an investment when they speak to their client but once they start to write it down it gets complicated.”

He thought reports in general would be better if they tried to explain in conversational language what the investments did and how this related to the client’s goals.

“Why can’t you just say: ‘you told me this and therefore this is why this works for you’,” he added.

“We put these big standard paragraphs in and we don’t even look at them. And they’re full of paraplanner and compliance jargon that no client is properly going to understand.”

imogen.tew@ft.com

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