Monday, 01 April 2019 12:26

Defaqto Content: Helping advisers face compliance challenges

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Financial services regulation continues to present major compliance challenges and business opportunities for financial advisers. Suitability letter writing is one of the challenges that financial planning tools can help with.

Defaqto is constantly investing in its Engage Core proposition in order to make sure that advisers have as much of what they need in one place. Its new suite of suitability reports are there to help adviser firms meet their regulatory obligations, whilst remaining in one workflow.

Suitability reports

Defaqto has worked in collaboration with Eversheds Sutherland to enable and facilitate suitability reports in Engage Core in order to provide a fully integrated end-to-end financial planning tool to advisers.

These suitability reports complement the current reporting capabilities of Engage Core, meaning advisers and paraplanners do not need to switch tools throughout the advisory process. They can save time by using the suitability report within Engage Core, as some content is pulled from their research sessions in Engage. Thus, they can satisfy compliance requirements while staying in one workflow.

Advisers are expected by the regulator to relay the story that took place. Using pre-set lists of text is frowned upon by the regulator. That is why Defaqto provides some standard text to help frame the advice but aims moreover to provide detailed hints and tips designed to help them craft a bespoke suitability letter for the client in line with the FCA’s requirements.

Defaqto suitability reports are flexible and can be amended on a firm level to be able to accommodate wording and standard content that may have previously been developed by the firm internally or from using a third-party consultancy.

The Defaqto suite of suitability reports cover:

  • Pension switching and contributions
  • Pension drawdown
  • Lifetime annuities
  • Investment switching & contributions
  • IHT planning using investment bonds
  • Individual life and critical illness
  • Income protection
  • Business protection

The suitability report templates contain notes to help advisers meet their regulatory requirements and follow the principles for best practice. It is possible to align them with the regulatory process and advice standards set and developed by the firm, by the company regulatory expert or a third-party consultancy.

Beyond suitability reporting

Engage Core also enables advisers to record a rationale at every step throughout the advice process as a whole. Documenting why each recommendation has been made, it automatically creates a full, detailed and editable report, which can be saved and shared with clients.

A chronological timeline shows all the history with a client, providing an overview at a glance. This kind of evidencing documentation, along with the risk-rated fund documentation in the Engage Core toolkit, is invaluable when it comes to satisfying regulatory requirements in this age of increasing scrutiny. Engage Core also reminds advisers about their clients’ latest agreed Risk Profile and the date when this was done.

Engage Core now also includes KIIDs, fund prospectuses and fund factsheets that can be added to the overall report for the clients or kept on file for audit purposes. Engage Core also includes MiFID II data where available.

Engage Core

About Defaqto: Specialists at your fingertips

Engage is backed up by our industry expertise with advisers receiving free training and support to use the system.

Our investment committee has over 215 years of experience within the financial services industry between them.

Members of our Funds and DFM team also sit on 3rd party investment Committees, sharing their insight and knowledge

Defaqto have been established for almost 25 years, and have 60 analysts spending 400 hours a day monitoring the market. We ensure that the information provided is accurate and up to date.

Defaqto analyse approximately 43,000 financial products and funds in the UK to help our clients to make better informed decisions.

By choosing Engage Core, adviser firms are able to integrate their financial planning tools, from risk profiling to fund research, into one end-to-end solution, ensuring that advisers are able to deliver consistent advice to clients at all stages of life.

With over 8,000 advisers already using Engage, get in touch today to find out more or to arrange a demo:

Telephone: 0808 1000 804 Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

For more information on Defaqto Engage go to:

Telephone: 0808 1000 804 Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

• For more information on Defaqto Engage go to:


Last modified on Monday, 01 April 2019 13:02
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