When is a report needed?
This extract from COBS (section 9.4) sets out the rules but in layman’s terms, if you make a recommendation that involves buying or selling units in a fund within a regulated product, a report is required. This includes actions like:
- Replacement business
- New plans
- Fund or portfolio switches outside of our regular email.
- Paying additional money in (apart from automatic increases)
- Bed & ISA
A suitability report is also required whenever a change is being made to an existing protection policy. This includes increasing the sum assured unless this is under an automatic indexation option.
A report could be as little as an email to the client with what should happen and why. If it has been covered in a review report then there is no need for a further one although if it involves buying funds in a portfolio the client should have the appropriate costs and charges information.
When is a service case needed?
If the change has an impact on the client’s financial position, it indicates there’s been a change in their needs or objectives, and we must show why the changes we are recommending are suitable. The only exception would be for smaller amounts (less than 40% of the value of the plan in question and less than £50,000).
Realistically a service case should be added when any advice is given. Reviews would come under this remit as there should be advice on the suitability of existing products (MIFID 2).
Realistically where reviews are being done properly there should be an in-date fact find/meeting notes for any advice being given so the service case will be much more of an admin/paraplanning function.
When do we need to have done a report by?
MiFID II (Article 24) states that it must be provided to the client ahead of the completion of the transaction. Basically, before your recommendations are implemented. For insurance products, it should be by the end of the cancellation period.
This demonstrates that your clients are being treated fairly and have plenty of time to consider the advice and change their mind if they want to.
What do we need to produce when a client wants to take a withdrawal?
When one-off withdrawals are taken we should send the client a letter detailing what they want to take and any effects of doing so. There are two templates for this in the IO library.
What should happen if a client wants to change their portfolio?
Why do we do in specie transfers?
What our clients say
We’re incredibly proud of the work we do. Here are the real words of real clients.
Matt has been my financial adviser for many years. During this time, he has always made himself available to advise on any matters that I have been concerned about. He has become a valued friend, with a wealth of financial knowledge.
Twenty years ago, my accountant recommended Matt Webb as a first-class financial adviser and that has proved to be the case. He is always courteous and ready to explain any questions I may have.
Matt has been our financial adviser for a number of years now and we look forward to working with him for many years to come. His expertise, advice, guidance and reliability has been at the heart of the trusting relationship from which we benefit.
I suffered a stroke at 58 and had to stop working to focus upon my recovery. PWS’s input was invaluable. They convinced me and my wife that we had amassed sufficient wealth to enable early retirement. I am now 61 and have made a full recovery and enjoy my retirement in the knowledge that I have a “financial partner” in PWS to allay my natural anxiety given the uncertainty we all have to navigate.
Matt has a very good understanding of his clients’ needs and nothing is ever too much trouble. Matt is very knowledgeable and explains everything clearly and in sufficient detail to enable an informed decision to be made. He deals with everything quickly and efficiently and responds promptly to every query. I wouldn’t hesitate to recommend Matt to anyone seeking any form of financial advice.
I have used the services of PWS for over ten years now. I have found their services and advice to be clear, efficient and prompt at all times. It has been refreshing to work with a company that is proactive and gives peace of mind that you really are receiving considered advice that specifically suits individual needs. I have had no hesitation in recommending PWS to personal friends as well as colleagues. Thanks Mo and your exceptional team - see you soon!
I was introduced to Steve in 2008. I genuinely trust and appreciate the professional advice given to me and my family. The ongoing investment and pension advice has been invaluable through the good and the bad times and I have had no hesitation in recommending Steve to family and friends.
PWS Financial Consulting Ltd have been our financial advisers since 2005. They have always offered sound financial advice based on our investment objectives as well as our personal needs. They keep in regular contact and provide us with ongoing financial advice as our needs and markets change. They take the time needed to fully explain our options and to guide us in an appropriate direction. We feel as though they truly care about us, our finances and our future.
(Mohit) Thank you so much for helping me by sorting out my retirement, pensions and general finances. You managed to improve my financial gains through astute financial management, and greatly help reduce my losses during the crash a number of years ago. It helps so much when you speak in a down-to-earth manner, which assists my decision-making going forward.
Having been a client of PWS for over 20 years, I cannot recommend them too highly. The levels of professionalism and product knowledge are excellent. They are fully interested in client and family circumstances and provide continuity of personnel which is crucial for client comfort. Their fees are realistic, and they make ease of consultation a priority. I would not hesitate to recommend their services.
I have been fortunate enough to have Matt as my financial adviser for over 10 years and during this time he has seen me and my husband through some major life events. These have included my own unexpected ill-health retirement and also for my husband, his cancer diagnosis, financial planning around this, his retirement and subsequent death. Throughout everything Matt has always been very personable, thorough, informed, efficient, responsive and has always dealt with us with great care and understanding, giving tailored advice to our own specific situation. Matt’s advice and support have made very difficult moments in our lives more manageable and have given me and my family a great base for a financially safe and comfortable future. I would not hesitate to highly recommend Matt as a financial advisor and I am very grateful that he has looked after us so well for so long.
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