Outcome 4
Where consumers receive advice, the advice is suitable and takes account of their circumstances.
Because the client pays the adviser directly for advice and service, rather than the adviser receiving a commission for the sale of investment product, the firm is incentivised solely to provide suitable advice in a completely impartial manner, taking full account of the client’s circumstances.
Details held on the M.I system demonstrate a clear link between the client’s circumstances and the advice given. The duty to ‘know the client’ is evidenced by a record not only of ‘hard facts’ but the client’s motivations, concerns, time horizons and attitude to investment risk.