FCA's Debbie Gupta has said a good fact-find will help firms renew their professional indemnity (PI) insurance
Speaking at the annual Dynamic Planner Conference in London yesterday (5 February), the Financial Conduct Authority's director of life insurance and financial advice supervision told delegates that conducting a suitable fact-find was "critical" in getting to know clients well.
Those who ensure they have completed a sufficient fact-find, Gupta said, will find it easier to renew their PI insurance. She said the FCA wanted to see more of firms transform their relationship with clients and be able to evidence how they have done so.
"Firms who are adapting well to knowing their clients are those who understand how critical a fact-find is," she said, "[but] not all firms do."
"We're still seeing defined benefit transfer advice files where adviser haven't recorded details of other pensions, what state pensions might be due, [for example]."
From a regulatory perspective fact finds also provide the evidence that demonstrates the advice advisers give is suitable, she added.
Addressing delegates, Gupta reiterated the concerns outlined in the FCA's ‘Dear CEO' letter sent out in January, which said the regulator was concerned some firms were not holding adequate financial resources and insurance.
The letter said: "We are concerned some financial advisers are holding inadequate financial resources and/or professional indemnity insurance (PII) for the business activities they carry out."
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