Dorian Hughes, business consultant at Redington, believed most adviser firms have good intentions and put their clients at the heart of what they do but work needs to be done in key areas such as client communication, retirement income and fee structures.
He also said that compliance with consumer duty was very much a “focal point” and outlined three practices firms can show in order to meet ongoing compliance requirements.
The first practice was that firms needed to evidence their client stewardship with Hughes highlighting that for most firms it was not their stewardship of clients which needed attention, but rather the provision of the evidence of that stewardship.
He said: “Firms with the right mindset are those that have taken steps to sharpen their pencils in this area. Centralising data and information, linking research to consumer outcomes and evidencing their processes with clear governance and oversight.”
Hughes also pointed out that firms needed to have clear guidelines on best practice because this will differ between each firm and by unique factors such as size, product offering and specific needs of the client bank.
