No one we know objects to the purpose of this increased scrutiny; however, in our experience, what the regulators are proposing often falls well short of what is already occurring as professional best practice. In other words, most advisors, in their day-to-day work, exceed regulatory requirements by a long shot.
That, however, that has not deterred regulators in Australia, the UK, Canada and the US (and other jurisdictions) from continually “raising the bar”, as they see it, regarding basic planning standards, client interests, fiduciary care and the current favorite, “suitability”.
Very few professional advisors with whom we work are concerned by what some might describe as a heavy hand by regulators, because they are already delivering great advice through a collaborative, planning-based approach to addressing client needs, rather than a prescriptive, product-centric process.
With that in mind, PlanPlus Global, in collaboration with our subscribers, has identified five “suitability proofs” aimed at ensuring that clients’ needs are at the heart of every advisory business.