Hazell Carr has assisted a number of organisations with investment review activity, which recently included a project for a major IFA network.
Hazell Carr assisted through deploying a small team of reviewers to the client’s site, which comprised of a senior compliance consultant supported by two case reviewers. The team undertook an initial sample review of files on a wide range of product and advice areas. The findings of this sample were compiled into a comprehensive report.
The report recommended further sampling to investigate the scale of potential mis-selling. Hazell Carr mobilised a team of ten case reviewers to undertake additional review activity. This review work highlighted several failings in the quality of investment advice being provided by the IFA, including the following:
- Basic know your customer (KYC) information was not always recorded correctly.
- Customer attitude to risk was not consistently documented.
- Products were being recommended that did not match with customer risk profiling.
- File build was generally inconsistent and did not meet the IFA’s internal procedures, which made audit work difficult.
- Post-sale customer reviews were not occurring with the necessary regularity.
The IFA is now seeking to address these failures. Customers at risk of detriment have been revisited and remedial activity undertaken, including redress where appropriate. Refresher training has been rolled out to affected advisors, pre-sale file checking has increased and a new competency regime established. Hazell Carr is continuing to assist the IFA to raise standards.