The FCA’s retirement income thematic review took a close look at how firms evidence suitability in decumulation. Two areas it flagged as varying widely from firm to firm were cashflow modelling and stress-testing. Add Consumer Duty on top of that, with its expectation to avoid foreseeable harm and deliver good outcomes, and it’s a good moment to look again at your own Centralised Retirement Proposition (CRP).
Whatever shape yours takes, three questions are worth asking of it.
1. Are you getting consistent outcomes across your client bank?
Two clients in similar circumstances should end up with broadly similar advice, whichever adviser they see. That consistency comes from having risk-graded portfolios that sit against clear client profiles, so the starting point is the same every time and each adviser is building from the same foundation.
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