Tuesday, 29 January 2019 10:17

Defaqto launches new suitability report template

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Defaqto has launched suitability report templates within its Financial Planning system, Engage Core.

The fin-tech company worked with law firm Eversheds Sutherland to develop the templates which will 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


Defaqto says it developed the templates to provide advisers with a framework within which to create a suitability report.

The collaboration was established in order to “reduce regulatory and compliance risk by standardisation of the suitability report process.

“By using just one tool firms can also save the cost of licencing multiple tools.”

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 to the regulatory process and advice standards set and developed by the firm, by the company regulatory expert or third-party consultancy.

Simon Collins, managing director regulatory at Eversheds Sutherland Consulting, said: “Financial services regulation continues to present major compliance challenges and business opportunities.

“Eversheds Sutherland’s Financial Services Regulatory Compliance team includes experienced industry professionals, who have significant front line experience across a range of business models together with considerable consulting experience.

“Defaqto approached us to support the legal and compliance aspects of development of their suitability report templates.

“We are delighted to have supported Defaqto in developing templates which are designed to meet the FCA guidelines to support advisers in their day-to-day jobs.

“Together we were able to develop templates designed to be in line with the FCA guidelines and thus will support advisers.”

David Cartwright, head of insight & consulting (wealth & protection) at Defaqto, said: “Our suite of suitability reports templates is there to help advisers meet their obligations under the regulations governing financial advice.

“Advisers are expected to relay the story that took place. Using pre-set lists of text is frowned upon by the regulator.

“That is why Defaqto’s templates provide some standard text to help frame the advice but aims moreover to provide detailed hints and tips designed to help the adviser craft a bespoke suitability letter for their client in line with the FCA’s requirements.”


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