A guide to help FAPs plan for business succession in times of disruption and change has been published by the FSC.
Richard Klipin, the FSC’s CEO, says when financial advice was brought under the Financial Markets Conduct Act 2013 industry regulation changed from supervising individuals to licensing and supervising FAPs.
“With this change came an expectation that licensed FAPs possess the systems and processes necessary to continue providing financial advice if a key person becomes unavailable,” he says.
The FSC’s Locum Financial Advice Arrangements guide is designed to help FAPs put the necessary systems in place to ensure business continuity when key decision makers are away.
Mark Banicevich, of Partners Life and lead author of the guide says: “Unexpected tragedies have left some FAPs without a financial adviser, and their clients have been without support while the situation is resolved.
“With this guide, we aim to help small businesses arrange locum advisers in advance of tragedy, so if something happens, the customer experience faces minimal disruption.
“Locum adviser arrangements are an essential part of a business continuity plan for any FAP that relies on a key person for financial advice delivery.”