23rd September 2019
Nucleus: Take a closer look at due diligence
Due diligence requirements continue to mature and evolve for advice firms, especially as we see regulation increase in the form of Mifid II, Prod rules and the FCA’s Investment platform market study.
It has been recognised by the FCA that there is an inconsistency of approach across providers and adviser firms in the approach and depth of relevant information to show the suitability of platforms. Now that the onus has been placed on adviser firms to evidence the suitability of their platforms, due diligence is a very important task and advisers need to be confident the platforms they use are right for them. Firms must complete a due diligence exercise for each of their client segments and should actively challenge their existing preferred platform, even if this means adopting a new platform for each client segment. The FCA wants firms to carry out objective assessments with robust systems and controls in place to be effective and make sure they get the very best outcomes for their clients.
We’ve developed a range of tools and materials to help advisers prioritise the areas of due diligence which are most important for the successful delivery of their client proposition.
We’ve created a whitepaper entitled ‘Questions advisers should ask platforms today’, which is a comprehensive list of questions allowing advisers to take a focused approach to getting the answers they need from platforms. Along with other related papers including a whitepaper produced in collaboration with ex-regulator, Rory Percival, called ‘Suitability: a guide for advisers’, and a due diligence brochure. Our technology team have also been hard at work creating an innovative, interactive reporting tool allowing advisers to generate a personalised report about how we meet the needs of their clients.
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