EDITION 1 | MAY 2021
9 for as long as I can remember . However , the experiences of the past year , and our understanding of how quickly completely unexpected events can take a person ’ s financial circumstances and resilience completely out of their control , mean that the above figures paint an even more stark picture .
Against this backdrop , I wanted the updated fact find and in particularly , the new sections and questions to really assist and encourage Members to talk to their clients about appropriate levels of protection , whilst also helping them to gather relevant information at the front-end in a comprehensive and compliant manner . If used to its fullest potential , this document could also help to save time with research and recommendations whilst also assisting the adviser to better manage their clients expectations around underwriting outcomes .
The fact find is only the first step of our support for Members in this area , and you can expect to hear more from us soon .
Against this backdrop , I wanted the updated fact find and in particularly , the new sections and questions to really assist and encourage Members to talk to their clients about appropriate levels of protection , whilst also helping them to gather relevant information at the front-end in a comprehensive and compliant manner .
What can you tell us about the FCA ’ s expectations in regard of fact find completion , and the collation of ‘ know your client ’ information when delivering protection-based advice ?
Well , as you know , ICOB rules don ’ t give us an exact list of the information which the FCA would like to see collected from clients . However , I would urge advisers to ensure they are capturing all they need to evidence that they have all the essential information about a client ’ s ‘ needs and objectives ’, which will form a robust foundation for any protection advice you go on to provide .
The FCA has regularly encouraged the importance of recording soft facts to establish the client ' s requirements in their own words , creating a ‘ story of advice ’. You may remember that this is something the regulator emphasised again in its equity release review last year , stating that the client ’ s voice should emerge from the fact find ‘ loud and clear ’.
When the advice process is conducted in this way , it is an improvement for all , enhancing both your conversion rates and the quality of advice , and I hope the revised fact find goes some way towards supporting you in achieving this .
How important is the completion of the fact find , from a compliance perspective ?
I think the most constructive way to view the completion of the fact find is to appreciate that it is not just a regulatory chore or task . Instead , I believe that – when used properly – the fact find should be seen as a hugely useful tool in assisting with your protection business conversion rates whilst demonstrating the suitability of your advice .
Should suitability ever be questioned , or the FCA / FOS need to know more about any of the advice you have given , robust use of a compliance fact find can demonstrate the quality of your advice process , the depth to which you know your clients and in turn , the suitability of your advice .
Do you think that paying the fact find the attention it deserves will lead to an increase in protection sales and , if so , why ?
I absolutely believe that ’ s the case , and driving more business was an important consideration for me when deciding what to add / amend in the fact find . I hope the new template will play a significant role in encouraging protection conversations with clients . In addition , it will help advisers to strengthen client relationships by managing their expectations from the outset of the process , by guiding open discussion of relevant health and medical questions .
Of course , any fact find is only as good as the information it holds , and I ’ m looking forward to sharing more information with Members on best practice and tried and tested questioning techniques to support them in opening up transparent and valuable conversations with their clients .
You can find the Protection-only Fact Find in the Operating Centre on our site – www . operating-centre . co . uk . Also , check out our upcoming events programme , as we ’ ll be providing regular updates on our regulatory support for you when providing protection advice .