A new publication from Strategi Compliance aims to show financial advisers that working under the new regulatory regime is more flexible than many may believe, while also revealing the firm’s checklist for reviewing compliance standards.
The publication – What does compliant financial advice really look like? – is aimed at financial advisers, managers and owners of financial advice providers (FAPs), as well as compliance and quality assurance staff within FAPs.
“A common misconception is that compliant financial advice is something set out in black and white, written in legal stone and with no room for suitable interpretation or adaption,” says David Greenslade, Executive Director of parent company, Strategi Group.
“The reality is that while there are rules that must be followed, these are more principles-based than prescriptive. The important thing is relating them to the client’s specific needs – that is what the aim of compliance is really about and what is likely to be considered compliant.”
“Our new guidance note shows readers how to achieve compliance that is good for the business, good for the client and good for the regulator,” he says.
The document outlines a six-step process for advisers:
- Establish and define the client relationship
- Gather data
- Analyse the current position
- Develop recommendations
- Implementation
- Monitor and review
The document goes on to describe that tech solutions can’t do it all when assessing compliance – and where human intervention is required – and details the firm’s compliance checklist for reviewing client files.
“A common misconception is that compliant financial advice is something black and white and set out in law, the reality is somewhat different and harder to define,” says Greenslade.