Following a consultancy visit to the adviser’s main offices, a ‘traffic light’ system is used to produce a colour-coded report, clearly identifying any business areas which fall short of the new guidelines. During the consultation, a specialist business consultant assesses how well the firm is using technology processes as well as looking more broadly at business procedures such as ‘suitability of advice’; ‘client expectation and feedback’ and ‘post sale barriers’.
The launch of the new service follows research conducted by 1st – The Exchange in May 2008 which showed that almost half (46%) of the adviser population was ‘confused and uncertain’ over what the FSA requires from them to evidence TCF principles by the December 2008 deadline.
David Child, managing director, 1st – The Exchange said: “Our research earlier this year certainly revealed the need for some urgent support to help advisers gain more confidence and knowledge about how to evidence TCF and use the Adviser Office system to help with this. With the FSA deadline only four months away, we really hope the new Acid Test consultancy service will prove a popular and useful new tool for many conscientious adviser firms.”
Colin Bannister, managing director, Ashcourt Financial Planning Ltd, one of the adviser firms who have adopted the TCF Acid Test Consultancy, explains the benefits: “This approach is sensible to ensure the reporting process captures all the data we need in the most appropriate format. The most beneficial part of the Acid Test Consultancy was without a doubt the expertise and experience of the consultant who took time to understand our business and guide us through the options available, highlighting points with specific relevance to our business.”
