At We Complement, we’ve been delving deep into the elements that constitute an exceptional Centralised Retirement Proposition (CRP). A CRP is more than merely a Centralised Investment Proposition (CIP) modified slightly for retirees. It should offer a reliable, repeatable, and consistent procedure for managing clients in the decumulation phase, with an emphasis on financial planning aspects that are particularly crucial at this life stage. This article aims to highlight areas to contemplate while devising an appropriate and sustainable withdrawal strategy for your clients. This article is not intended to be an exhaustive checklist of what a CRP should include, nor does it favour one strategy over another. Instead, it aims to stimulate thoughtful discourse and consideration. We hope it offers some valuable insights!

How do you determine the sustainable withdrawal rate for your clients?

Clients typically rely on their pensions to sustain them throughout their remaining years, necessitating guidance to discern the ideal withdrawal amount to ensure their pension does not deplete prematurely. The calculation of this figure is a challenging process, not necessarily an exact science, underlining the importance of documenting your methodologies and the reasoning behind them. Having this documentation can provide a solid defence should a client question or challenge your conclusions in the future, demonstrating the how and why of your calculations. What considerations factor into your sustainable withdrawal rate? Do you adhere to the often referenced 4% sustainable withdrawal rate proposed by William Bengen, or do you modify this percentage for UK investors? How do fees impact the sustainable withdrawal rate? Do you consider that the sustainable withdrawal rate might change for portfolios with different asset allocations? Do you apply a uniform sustainable withdrawal rate to all clients? What research and evidence support your approach? Determining a suitable withdrawal strategy is a significant aspect of assisting your clients with retirement planning. Your CRP is the perfect place to justify your thought process.

How much are you allocating to cash?

As discussed in last week’s newsletter: CRP Deep Dives: Decumulation Risks, sequencing risk can significantly influence the longevity of a pension pot. To mitigate this risk, some advisers adopt a bucket strategy or maintain a certain amount of cash ready for withdrawals. Some advisers avoid this approach and don’t place any more importance on cash than they would for an accumulation client.

Both approaches have their merits and can be backed by compelling arguments. The critical factor is to clarify your methodology and substantiate the reasoning behind it. This clarification promotes a consistent procedure across the firm and among clients, ensuring that your advice is robust, well-founded, and evidence-based.

What if things don’t go to plan?

The unpredictability of the future plays a significant role in making retirement planning a challenging task. Unforeseen events such as market downturns or significant life changes can disrupt even the most meticulously crafted plans, underscoring the need to prepare for the unexpected. What measures do you implement to counteract unexpected occurrences? Do you frequently engage in discussions about contingency plans with your clients? If so, at what stage do you determine that it’s necessary to resort to these contingency plans?

What probability of failure are you comfortable with?

Choosing a sustainable withdrawal rate often requires balancing a higher income against the risk of depleting the portfolio. Some clients might favour the potential of a higher income, despite the risk of it running out, as opposed to the certainty of a lower, but enduring income. Your CRP could be an opportunity to document the level of uncertainty you are typically willing to tolerate when deciding on a sustainable withdrawal rate, the reasoning behind that tolerance, and how you approach this compromise with clients.

Assumptions about longevity

Predicted longevity is a crucial factor in determining the sustainable withdrawal rate, and your methods for estimating probable longevity can be documented in a Centralised Retirement Proposition (CRP). Do you use a standard life expectancy for all clients? Do you rely on longevity data from authoritative sources like the Office for National Statistics? When advising a couple, do you factor in the likelihood of at least one partner reaching a specific age, or do you evaluate their life expectancies independently? Your CRP is the optimal platform to outline the assumptions you make regarding longevity and the process by which you arrive at these assumptions.

Establishing a resilient CRP requires recognising and mitigating risks to assure clients of a secure and sustainable retirement income. It’s crucial to craft strategies that resonate with clients’ risk tolerance, objectives, and personal circumstances. Although CRPs may not be heavily regulated, integrating these risk considerations can significantly enhance the quality and efficacy of your retirement planning services.  If you’re contemplating a review or implementation of your CRP, consider enlisting the expertise of our seasoned professionals. We specialise in constructing bespoke CRPs, finely tuned to meet your clients’ distinctive needs. Get in touch with us either online or by dialing 01472 728 030. We’re at your service, ready to deliver top-notch due diligence and investment research services.

Yes, keeping in touch with your clients regularly is a great thing to do, however, as you will no doubt know, the Financial Conduct Authority (FCA) also requires advisers who supply investment advice to do annual planning reviews in a formal way. Specifically, you should “agree with a client whether a periodic assessment of suitability will be performed. If periodic assessment is to be performed it must be at least annually and the continued suitability confirmed in writing”.

These annual planning reviews- which we can help with, are a valuable opportunity to have a really in-depth check-in with your client – and the best ones focus on the person, as well as the products.

So, while it is possible to include everything on one page, at We Complement we believe APRs should become a document of your client’s annual financial planning journey – not just a snapshot.

For example, while you need to include details of all current investments, their performance, and any recommendations you would make, a good APR will also appraise your customer’s circumstances – what are they investing for, how they are planning on making it work and any worries they may have.

Clearly, this is considerably more time consuming for an IFA – which is where the We Complement team come in.

We will work with you to develop a document which is personal to each client, while also ensuring it truly represents your brand. We will undertake all necessary research to emphasise the value you have provided during the previous 12 months – and how you will continue to do so in the future.

We can also access all the necessary information on your system, such as products, planning and risk profile, and add these to the APR document, giving an overall review that provides a truly detailed view of your client’s financial year.

We Complement believes that your annual planning reviews are a great opportunity to engage fully with the financial planning needs of your clients. Sending a one page summary just seems to be such a wasted opportunity not to take the chance to engage positively with them.

Once we have all the details we need, we go ahead and prepare the review, and typically produce reports in five to seven working days.

For more information about our annual review offering and complementary offerings, and how they can benefit you and your clients, please get in touch.

Are you ready to transform your advisory practice into a seamlessly efficient powerhouse? At We Complement, we understand the critical role client management plays in the success of adviser firms. Our Client Management Service will revolutionise the way you interact with clients, streamline administrative processes, and give you the time and confidence to grow your business.

Efficiency Redefined:

Say goodbye to complicated and disconnected processes! Nicola Porter, our Head of Operations, and our team know what works. They are focused on cutting out inefficiencies, so you can concentrate on what you do best—providing expert financial advice. With a keen eye for detail, they handle the complexities of data gathering and organisation, setting the stage for solid client recommendations.

Proactive Case Management:

Ever felt overwhelmed by administrative bottlenecks?  Yep, we understand, our team go beyond just managing cases; they relentlessly push for progress, refusing to accept delays. Your business deserves a dynamic force that keeps things moving, and our team is up to the challenge.

Seamless Communication:

Imagine a world where communication breakdowns are a thing of the past. We have mastered communication, and are always 5 steps ahead- never playing catchup.  We Complement ensures that information flows effortlessly between you, and your clients and anticipates the next steps. Fostering a collaborative environment that maximises productivity. Imagine the ease that comes with a well-connected team working in perfect harmony.

Why Choose We Complement’s Client Management Service?

Boosted Efficiency, Amplified Results:

Our streamlined administrative processes are designed to amplify your productivity. By optimising every step, we save you time, allowing you to focus on what truly matters—delivering exceptional financial advice and growing your client base.

Precision and Compliance:

Navigate regulatory requirements seamlessly with We Complement. Our client management service gives you access to a comprehensive suite of suitability templates our paraplanners designed with Consumer Duty in mind. Paired with our dedicated team of paraplanners, our unwavering commitment to technical accuracy guarantees not just compliance, but surpassing regulatory standards. Stay ahead confidently.

Enhanced Client Experience:

Elevate your client interactions with prompt, efficient service. Our service helps you to exceed client expectations, fostering strong relationships. We embed ourselves as part of your team and solidify your reputation as a trusted financial adviser.

Cost-Efficient Operations:

We Complement doesn’t just optimise your processes; we save you money. Inefficient processes can be costly. We will review your administrative functions, (How many different licenses are you paying for systems that have the same functions?) and make suggestions as to how you can cut down on both time and financial resources, ultimately boosting your bottom line.

Administrators serve as the first and last point of contact for clients, representing your business throughout. Acknowledging and valuing their skills is crucial for the success of your advisory firm. Whether you’re a financial adviser seeking improved efficiency or a business owner aiming to elevate the advice journey, We Complement provides an all-encompassing solution. Contact us online or call 01472 728 030 to discover how we can enhance your client management services.

When running a financial practice, precision, efficiency, and client-centricity are paramount. At the risk of repeating myself, the important roles that paraplanners and administrators play cannot be underestimated.At We Complement, we take pride in being more than just a team; we are your dedicated partners in taking your advisory practice to new heights. Our Client Management Service is designed with flexibility, remote collaboration, and technical expertise to meet the unique needs of your business.

Navigating Operational Excellence

Our primary mission is to be the driving force behind your operational efficiency. We understand that your time is a valuable resource, and by seamlessly managing all client-related tasks, we free you to focus on what matters most—fostering client relationships and growing your business. Whether you are looking for integration with your existing team or a comprehensive outsourced solution, our services are crafted to align seamlessly with your specific requirements.

Key Features: A Comprehensive Overview

One Ongoing Monthly Payment

Ensure uninterrupted support for your existing clients throughout the year with a straightforward and manageable single monthly payment.

Transparent Fee Structure

Our fees are calculated on a monthly cost-per-client basis, offering a transparent and customisable pricing model. Typically ranging from £50 to £85 per client per month, our fees are designed to cater to the diverse needs of your business.

Pre-Meeting Assistance

• Full diary management and client meeting scheduling to optimise your time.

• Rigorous compliance checks and proactive file updates to ensure regulatory adherence.
• Timely client information updates for a comprehensive understanding of client profiles.
• Conducting vulnerability assessments to prioritize client well-being.
• Regular updates on policy values and transaction history.
• Preparation of detailed portfolio reports and performance summaries from provider platforms.
• Crafting discussion points and confirming unused allowances for informed client interactions.

Post-Meeting Support

• Swift back-office updates post-client meetings.
• Implementation of post-meeting tasks to expedite the advisory process.
• Retrieval of the latest MiFID cost & charges statement for compliance.
• Expertly crafting and issuing suitability reports, including fund switches and rebalancing.
• Seamless back-office and portal maintenance.
• Proactive platform management
• Email administration.

One-Off Setup Fee

Experience a hassle-free onboarding process with a one-time setup fee of £1000 + VAT. This fee encompasses a comprehensive behind-the-scenes effort, including creating tailored process guides, collaborating with internal staff, and establishing efficient workflows.

Scalability Solutions

Are you planning for growth? We offer a new client onboarding service at a fixed price per client, ensuring a seamless and customised onboarding process.

The We Complement Process

1. Initial Discussion:

Connect with us for an in-depth conversation. Share your challenges, and together, we’ll identify how we can bring unparalleled value to your business.

2. Onboarding Meeting:

We present you with a tailored onboarding process, showcasing the specific value we bring to your operations.

3. Implementation:

Experience a smooth onboarding period estimated at 4 to 5 weeks, finely tuned to your firm’s unique requirements and procedures.

Elevate Your Client’s Experience

Ready to transform your client management experience? Schedule a meeting with us to discuss your firm’s unique requirements. We are eager to partner with you, supporting your success and contributing to the continued excellence of your financial advisory practice. Embrace a new era of efficiency and client-centricity with We Complement’s Client Management Service.

Tis the season of giving, and what better gift to unwrap than the timeless knowledge tucked between the covers of a good book? Recently, we tasked Tony Slimmings to share his top picks for essential reading for financial planners. Something an avid reader like Tony found somewhat of a challenge!

I was asked to write a 500-word piece on my 5 books that would make it on my essential reading for a financial planner list…I managed to get it down to 6 and still missed dozens of other good reads!

Firstly, I know there are some great and obvious financial planning-related books, just a few being:

• The Psychology of Money by Morgan Housel,
• Facilitating Financial Health: Tools for Financial Planners, Coaches, and Therapists by Brad and Ted Klontz and Rick Kahler,
• Behavioural Investing: A Practitioners Guide to Applying Behavioural Finance by James Montier,
• The Client-centered Financial Adviser: The ultimate guide to building high-trust, high-profit relationships and a thriving practice by John Dashfield

However, in this article, I wanted to touch on books that I believe are essential reading for financial planners because they are good for the client!

I am 59 and have been involved in the world of financial planning for 30+ years, so some of these titles may be a little dated or have been superseded but they are still relevant today.

As a starter for ten (well 6) if there is a financial planner alive who has not read Thinking Fast and Slow by Danial Kahneman just go buy it! I would regard this as almost as essential reading as any technical exam you might have taken.

One of my favourites is The Number by Lee Eisenberg… Too many people are focused on accumulating wealth without a true understanding of what the destination will look like. Just give this book to each of your prospects and clients and ask them to call you when they have read it and are ready to talk!

How Clients Buy by Tom McMakin and Doug Fletcher is aimed squarely at the dark art of selling! Not selling a product but selling the benefit of you as a consultant. These days the psychology of clients and how they think about their money is as popular as ever (believe me it was not always so). Sometimes, however, just understanding how your client makes their ‘buying’ decisions can be more useful. If they never buy ‘you’ they will never benefit from you.

How To Be More Pirate – Sam Connif and Alex Barker is a brilliant little book about challenging the prevailing paradigms. Financial services and financial planning folks tend to be quite conservative and accept new concepts very slowly. I really believe the future of financial planning will look a lot different to the one we inhabit today, and it will be the ‘ethical pirates’ who achieve this.

It’s Not About You by Bob Burg and John David Mann is another wonderful little book that anybody in business or dealing directly with customers should read. A light-hearted read with a powerful message.

Finally, The Richest Man in Babylon by George Clason. An absolute classic using fables to get across all you ever need to know about the essence of financial planning. Every apprentice, graduate, and new employee setting out on life’s journey should be given this book to read. Financial Planning is not about numbers, it is about understanding sound financial management and this little book has this by the bucket.

Sorry, 550 words – what books would you love to receive this Christmas?

Happy reading and wishing you all a festive season filled with knowledge and joy!

Tony Slimmings

My essential reads!

Thinking Fast and Slow by Danial Kahneman

The Number by Lee Eisenberg

How Clients Buy by Tom McMakin and Doug Fletcher

How To: Be More Pirate – Sam Connif and Alex Barker

It’s Not About You by Bob Burg and John David Mann

The Richest Man in Babylon by George Clason

Behavioural Investing: A Practitioner’s Guide to Applying Behavioural Finance by James Montier

The Psychology of Money by Morgan Housel

Facilitating Financial Health: Tools for Financial Planners, Coaches, and Therapists by Brad and Ted Klontz and Rick Kahler

The Client-centered Financial Adviser: The ultimate guide to building high-trust, high-profit relationships and a thriving practice by John Dashfield

Unlocking Efficiency: 5 Questions for Seamless Onboarding

In this weeks newsletter we unravel outsourced adviser support and the seamless journey of collaboration that unfolds when partnering with We Complement. From the very first inquiry, we set the stage for what is to come, redefining the conventional approach to outsourced adviser support. At the core of our methodology is how can we help you to work more efficiently and ultimately spend more time doing what you do best, giving excellent advice to your clients.

The findings of the Financial Lives 2022 survey reveal an ongoing challenge for consumers, as they persistently encounter issues related to customer services and communications that fail to facilitate informed decision-making. Over the period up to May 2022, a staggering 4.3 million individuals received information from their service providers that either proved unintelligible, did not meet their specific needs, or arrived untimely. These findings make it clear that more advisers need to engage in outsourced adviser support.

We create a strategic framework designed to elevate your operations by integrating our expertise with your unique advice journey.

Our commitment to knowing your business inside out isn’t just for our benefit; it’s a strategic move to enhance efficiency for both parties. As part of our onboarding process, we pose five key questions that go beyond the surface, ensuring a seamless collaboration.

Do You Have a Centralised Investment Proposition (CIP) and a Centralised Advice Framework (CAF)?

Implementing a robust Centralised Investment Proposition (CIP) and a Centralised Advice Framework (CAF) is more than a compliance checkbox. It’s a strategic move that aligns with the FCA’s PROD reviews, showcasing your commitment to delivering consistent and reliable outcomes for clients. Beyond compliance, a centralised system significantly reduces the risk of errors and omissions, enhancing client satisfaction, potentially leading to positive referrals and new business opportunities.

What Risk Profiling Procedures Do You Have?

Risk profiling isn’t just about ticking a box; it’s a crucial component that dovetails into the recommended investment solutions. We collaborate with you to navigate through various risk profiling tools, ensuring a seamless fit for your firm. Our expertise allows us to contribute insights beyond tool selection, recording discussions with clients comprehensively.

Do You Have Your Own Suitability and Annual Review Templates?

We understand the sensitivity around templates, and our approach is collaborative. Rather than dismantling existing templates, we work with you to compile necessary information that satisfies both clients and compliance. Our templates go beyond the conventional outsourced adviser support, offering detailed and layman-friendly justifications for advice, ensuring transparency and client understanding.

Do You Have Your Own Internal Compliance/File Checking Procedures?

Acknowledging the evolving compliance landscape, we align our work with your internal compliance procedures. Our specialised expertise and resources enhance turnaround times, accuracy, and consistency in report production. By working closely with your compliance framework, we ensure positive gradings for all files, meeting the required standards.

Are You Open to Us Working Closely With Your Admin Team?

Integration into your admin function isn’t just about collaboration; it’s a strategic move to elevate client satisfaction. By focusing on providing top-notch financial planning and service, you create a ripple effect of satisfaction, leading to more referrals and business expansion without the fear of complaints.

While these questions are a cornerstone of our onboarding process, they represent a starting point. We invite you to explore the multitude of ways your business could benefit from our collaboration. Contact us online or call 01472 728 030 to initiate a discussion.

Your success is our commitment, and efficiency is the key.🚀💼 Visit our website for more information.

Navigating Capacity for Loss: Key Insights for Savvy Paraplanners

One common misconception in the paraplanning world is the belief that attitude to risk takes precedence over capacity for loss, when, in reality, it’s often the other way around. Understanding a client’s financial ability to absorb losses is paramount, and here are five crucial points to consider when assessing capacity for loss:

1. FCA Mandate on Capacity for Loss
In March 2021, the Financial Conduct Authority (FCA) emphasised the importance of considering capacity for loss in suitability reports. The FCA defines it as the customer’s ability to absorb falls in the value of their investment, especially if it would materially impact their standard of living. This underscores the need for a thorough assessment beyond just attitude to risk.

2. Factors Influencing Capacity for Loss
Assessing capacity for loss requires a comprehensive look at various financial aspects:
– Income needs
– Present and future income sources
– Other assets
– Expected inheritances
– Time horizon before investment withdrawal

Documenting these details in the fact-find is essential for a holistic understanding.

3. Distinguishing Between Types of Losses
Paraplanners should differentiate between permanent and temporary losses. Understanding whether a client can recover from a loss over time is crucial. This nuanced evaluation ensures tailored recommendations based on the specific nature of potential losses.

4. Integration of Attitude to Risk and Capacity for Loss
While distinct, attitude to risk and capacity for loss should be assessed together. For instance, a client expressing a willingness to take high risks but having a low capacity for loss implies that the latter will dictate recommended solutions. This integrated approach provides a balanced view of the client’s financial landscape.

5. Precision with Cashflow Modelling
There’s no one-size-fits-all method for assessing capacity for loss, but cashflow modelling stands out for its precision. Calculating losses in percentage terms and aligning them with a client’s cashflow forecast provides a tangible understanding. Additionally, capacity for loss questionnaires and examining income requirements can offer valuable insights.

Tony’s thoughts

I see many examples of capacity for loss only given a cursory nod by advisers with the product selection and tax tail wagging the recommendations. If someone does not have three to six months of available cash to cover income or sufficient cash to cover known expenditure (holidays, car purchase, home improvements etc.) in the next 12 months then quite simply they should not be investing for five years plus! My other bug bear is the immediate use of pensions due to the tax relief available rather than a sensible use of say ISAs to provide a level of medium term cash needs, given that pension fund access could be decades away.

Top Tip: Prioritise Capacity for Loss
As Hannah suggests place capacity for loss as the primary decision-maker, superseding attitude to investment risk. This approach ensures a solid foundation for crafting well-informed and client-centric recommendations.

**Get in Touch**
If you want to delve deeper into capacity for loss discussions or ensure the robustness of your suitability reports, reach out to us at hello@wecomplement.co.uk or call 01472 728 030.

Navigate capacity for loss wisely, and let’s elevate the standard of financial planning together! 🚀💡 #Paraplanning #FinancialAdvice #CapacityForLoss #FCAGuidance #InvestmentRisk

Are you tired of the last-minute scramble every March? Prepare for the upcoming tax year’s end now with our expert tips from the We Complement team. Here’s a more detailed breakdown by our team members:

**Hannah: Carry Forward Calculations**

Don’t risk losing carry-forward allowances—calculate early. Waiting may result in missing information, potentially costing you valuable allowances. Consider creating a designated folder for each client, ensuring you have all necessary documents in one place. Early preparation also allows you the opportunity to address any discrepancies or missing details directly with clients or providers, streamlining the entire process.

**Paul: Client Review and Record Update**

Take this time to review active clients comprehensively. Beyond updating back-office records, delve into the client relationship. Are there changes in their financial goals? Any major life events that might impact their financial planning? By proactively addressing these aspects, you not only fulfill your compliance requirements but also strengthen your client-adviser relationship.

**Kathryn: Client Annual Reviews Spreadsheet**

Maintain an overview of client annual reviews using a comprehensive spreadsheet. Add review tasks to the back office system for each client to stay organised and on track. Additionally, consider implementing automated reminders for upcoming reviews. This not only reduces the risk of oversights but also ensures a consistent and timely approach to client interactions, enhancing overall service quality.

**Nicola: Revise and Update Annual Review Process**

Tailor your annual review process to meet your company’s and clients’ evolving needs. In addition to workflows, explore technology-driven solutions that can further streamline the review process. Automation tools can assist in data gathering, report generation, and even client communication. By embracing technology, you not only save time but also position your firm as forward-thinking and client-focused.

**Lucy: Plan Ahead with Providers’ Timescales**

Plan strategically, considering providers’ timescales. Beyond knowing their deadlines, establish proactive communication channels with key providers. Understand any changes in their processes or documentation requirements. Building strong relationships with providers ensures smoother collaboration, potentially unlocking additional support or insights beneficial for both parties.

In conclusion, having a well-defined strategy for managing your workload throughout the tax year is essential. Prioritise tasks, delegate effectively, and plan ahead to avoid last-minute scrambles. Consider leveraging resources like online tools or outsourcing firms to enhance efficiency.

Take a proactive approach to tax year end tasks, and ensure your clients receive top-notch advice and service. For a detailed discussion or assistance with your business, contact us hello@wecomplement.co.uk or call us at 01472 728 030.

Prepare now, and future you will thank you for a stress-free tax year end!

The We Complement Research & Due Diligence Service includes a comprehensive collection of documents which are more than just a centralised investment proposition. Our documents delve deep into the governance structure of financial planning firms. Leaving behind a trail of unique ‘fingerprints’ that distinctly represent each firm’s ethos. 

Navigating the Landscape 

At the core of our service is the meticulous examination of critical elements, including a firm’s central investment policy and proposition (CIP), central retirement proposition (CRP), target client market/segments, and the platforms and portfolios in use. While the starting point generally is consistent, the finished documents reflect the unmistakable identity of each firm. 

Embracing the Accord Initiative 

We have integrated the Accord Initiative into our research, enhancing the ability of advice firms to demonstrate suitable and compliant advice. In particular, our approach aligns seamlessly with Consumer Duty, Product Governance (PROD), COBS, Sustainable Disclosure Requirements (SDR), and sustainable investment labels. 

Consumer Duty and PROD: A Commitment to Excellence 

Consumer Duty lies at the heart of our service, ensuring financial planning firms act to deliver good outcomes for their retail customers. Subsequently, we meticulously address the four main consumer duty outcomes. Emphasising products and services, price and value, consumer understanding, and consumer support. Our commitment extends to acting in good faith, avoiding harm, and enabling customers to pursue their financial objectives. 

Furthermore, if we delve deeper into our approach, adhering to FCA FG 22/5 6.80. This involves addressing granular aspects, including target market specificity, product design, vulnerability considerations, distribution strategies, and ongoing monitoring. Evidently, our commitment ensures optimal consumer outcomes. 

PROD 3: An Unavoidable Chapter 

Despite being often overlooked, Chapter PROD 3 of the FCA Handbook remains a focal point for us. We meticulously cover key rules relevant to both distributors (advisers) and manufacturers (providers), ensuring there is no room for ambiguity in compliance. 

Investment Policy: A Collaborative Approach 

Teaming up with the firm’s ‘Consumer Duty Champion,’ we provide comprehensive research and due diligence support to crystallise the firm’s unique investment policy. This includes clarity on investment and platform selection, ESG considerations, passive/active stance, and decisions on outsourcing or in-house investment management. 

Client Segmentation: Unveiling Unique Fingerprints 

While not explicitly mandated by Consumer Duty or Product Governance rules, our service empowers firms to segment their customers effectively. Through a straightforward framework within the centralised investment proposition, we enable firms to identify and evidence their target market at a granular level. This means considering characteristics, risk profile, complexity, and product or service nature. 

Value for Money: Beyond the Bottom Line 

Value for money assessments, a crucial outcome of Consumer Duty, is seamlessly integrated into our process. We go beyond the mere evaluation of costs. Considering the nature of products or services, associated limitations, and the expected total charge over the client-firm relationship. Our tailored framework ensures a transparent demonstration of fair value. 

Addressing Vulnerability: A Caring Commitment 

Consumer Duty mandates additional responsibilities regarding vulnerable customers, and we rise to the occasion. Rule 2A.3.16 underscores the need to consider and document the understanding of vulnerable customers. Therefore, our service ensures that product selection aligns with the needs of customers facing health conditions, major life events, low financial resilience, or limited financial knowledge. 

Research Process and Evidence: A Foundation of Trust 

We Complement’s commitment to clarity extends to the research process itself. Moreover, our research is backed by independent tools from industry leaders such as Langcat, FE Analytics, and Synaptic. The documentation produced stands on a solid foundation of evidence. 

To summarise, in a landscape where precision and compliance are non-negotiable, the We Complement Research & Due Diligence Service stands as an invaluable partner. Let us unravel the complexities of your centralised investment propositions and leaving behind a trail of unmistakable fingerprints that showcase each firm’s commitment to excellence and client-centric practices. 

The deadline may have passed, but the principles of consumer duty resonate deeply at We Complement. Our culture is a testament to the fact that the journey is just as crucial as the destination, with paraplanners playing a pivotal role in ensuring a safe and secure passage. While advisers decide the route, our responsibility is to identify potential foreseeable harm, contributing to a seamless and risk-free client journey.

A Closer Look at Our Impact

Consumer duty isn’t just a checkbox for us; it’s ingrained in every facet of our operations. Here’s a closer look at how the We Complement Client Management Service is making a difference for our partner firms, subtly enhancing their ability to navigate the intricacies of consumer duty.

Client Segmentation: Tailored Experiences

One area where we shine is in helping firms create and refine client segments along with their associated charging approaches. By documenting the services provided and the corresponding value for each charge, we ensure transparency and clarity. Regular testing of the charging model guarantees that time and costs remain accurate. The creation of customer journeys for each client segment is a strategic move, allowing firms to fine-tune the client experience based on their unique needs and expectations.

Back Office Systems: Capturing the Intangible

Our commitment to consumer duty is supported by a dedication to evaluating back-office systems. In light of the FCA’s Financial Lives 2022 survey, which revealed that for 4.9 million adults relying on provider communications, the information failed to assist them in decision-making. Especially affecting those with characteristics of vulnerability. We meticulously ensure that your chosen systems align with Consumer Duty’s requirements, capturing every aspect of the advice dialogue. Partner firms benefit from our expertise in utilising third-party tools and back-office systems, emphasising their seamless integration into client journeys and the significant value they contribute to the advice process.

Client Portal: Elevating Engagement

Surprisingly, many of our partner firms underutilise the client portal within their client base. Aligning with Consumer Duty, we guide firms in using software to effectively monitor communications. By promoting the client portal, we empower firms to establish secure, straightforward engagement channels. We create a scenario in which we seamlessly store a suitability letter in the client record, share it through the portal, and follow up with an automated email that invites the client to digitally sign it with a single click. Our Client Management Service has assisted in transforming this process, making document sharing secure, efficient, and client-friendly.

Prioritising Evidence: A Key Imperative

In the era of Consumer Duty, the capture and documentation of evidence are paramount. We emphasise the need for firms to invest time in this process. Ensuring that critical information is readily accessible when needed. This proactive approach not only aligns with regulatory requirements but also establishes a foundation of trust and transparency.

Your Journey, Our Support

Navigating the intricacies of Consumer Duty may seem daunting however, you don’t have to go it alone. We’re here to help firms actively weave consumer duty into their cultural fabric. Our Client Management Service aims to be your partner in this journey, offering active support and expertise.

If you’re ready to enhance your approach to consumer duty, reach out to us online or call 01472 728 030. Let’s embark on this journey together, ensuring that your systems not only comply with regulations but also elevate the overall adviser and client experience.