"I imagine that was probably factored in by the FCA. So, in the short term the advice gap will have grown but it also means there has been a reduction in cross subsidy between clients.”
However, Band believed the advice gap widening was a “negative side effect” of the regulation.
Client Communication
Another important aspect for the Personal Finance Movement was for clients to understand the products they are committing to and Meller said the firm always takes the time to explain products to clients in detail.
“Enhancing financial literacy is one of our main aims and in our view really at the heart of the consumer duty to ensure that clients can make decisions that they understand and which benefit them.
"We therefore regularly host events during which we explain to the attendees how Isas and pensions work amongst other softer aspects such as effective budgeting,” she added.
Hatt highlighted how the firm considered in detail how it was demonstrating the protection gap most clients have.
He said: “We brought this area of advice forward in our reports and we now specifically illustrate their current position, the shortfall if there is one (there usually is), and the cost of dealing with the gap. This has led to increased awareness of the issues and to extra policies being taken out, which is great for our clients and their families."
Hatt also said the firm was completing its first annual consumer duty report and for the first time the pro-bono work the firm has done is being recognised.
First Sentinel Wealth upgraded their advice process and onboard process, Band explained.
He said: “This means we are more in contact than ever before, and within the first 30 days, 60 and 120 days of being a client, there are various ‘’touch points’’ which are going down well with clients.
“We have also improved our client feedback system, meaning we are continually receiving MI on our valued clients, and therefore enhancing our consumer experience.”
alina.khan@ft.com
