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.