Lets discuss annual financial planning reviews or, to use FCA language, to comply with the periodic assessment of suitability rules:

“Firms providing investment advice must agree with a client whether a periodic assessment of suitability will be performed. If periodic assessment is to be performed it must be at least annually and the continued suitability confirmed in writing.”

COBS 9A.

Most firms provide ongoing service to their clients and this is usually at least annually. So far so good, no fundamental changes of practice required by most if not all firms.

To quote further:

“Where an investment firm provides a service that involves periodic suitability assessments and reports, the subsequent reports after the initial service is established may only cover changes in the services or instruments involved and/or the circumstances of the client and may not need to repeat all the details of the first report.”

In summary the ‘periodic report’, must contain an updated statement of how the existing investments meet the preferences, objectives and other characteristics of the client.

Furthermore:

Periodic disclosure of aggregated costs which have actually been incurred for investment services and financial instruments, must be provided to each client with which the firm has or has had an ongoing relationship with during the year, annually on a personalised basis.

Annual Financial Planning Reviews

So, if the FCA require you to write to each client each year and confirm suitability and costs why not use this as an opportunity to engage positively with the client? Yes, our annual financial planning reviews include the required regulatory information but they can also include a financial planning journey overview, some financial forecasts, a portfolio review and maybe an overview of unused allowances? This is why we created our Annual Planning Review service!

What

What’s Involved?

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Yes, it is possible to include everything required on one page but we believe APRs should become a client’s annual financial planning journey document not just a snapshot. We also believe they should create open communication between the adviser and the client.

Yes this requires a little bit more time building the right document but we will help you build and develop a document which is something that is personal to each client. We will also ensure the document presents your brand and emphasises the value you have provided during the previous 12 months and will continue to do so in the future.

We will then look to access the necessary information on your system, such as products, planning, risk profile, costs, portfolio updates etc, and add these to the APR document.

How

What's Included

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As standard a completed periodic review document using the agreed template that the adviser is happy to be sent out.

If you require further assistance in gathering valuations and updating client fact finds and risk profiles we are happy to assist.

 

Why

FAQ’s

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What is the cost?

We normally quote £100 to produce a basic APR (including VAT) via our flexible pricing offering. If we are asked to obtain up to date valuations and further client information then clearly this extra time will add to the cost. The good news, however, is that we will include the full annual financial planning review service and also create bespoke APR for you if you sign up for our all inclusive monthly fee offering.

How long do they take to prepare?

Once we have all the details we need, we go ahead and prepare the review. We typically expect a 5 to 7 working days turnaround.

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