The FCA will also concentrate on product governance processes and incentive schemes, assess adviser qualifications, the way client money is handled, plus portfolio risk and customer objectives for wealth management firms.
Take steps to make sure your documented processes and behaviours reflect core values of treating customers fairly and standards of professional conduct, and that this latest retail conduct risk outlook dovetails with your business plan. Senior management should be made aware of the key points and it should form a part of risk management strategy.
Above all be clear and transparent with your clients at all times. Do not blind them with science and make sure you deliver in line with your advice and service proposition promises.
Simon Thomas is head of regulatory policy for Tenet
