Increased focus on investment suitability just one of challenges facing advice firms

26 June 2019

A combination of increased consumer protection, an ageing population and the digitisation of personal service are posing challenges and opportunities for adviser firms on an unprecedented scale, according to the CEO of Dynamic Planner. 

Ben Goss said ensuring investment suitability will grow more important for advisers as the FCA and EU regulators continue to raise standards across Europe through MiFID II, while countries like the US, Canada, Hong Kong, Japan, India and New Zealand have also introduced new regulations to protect the interest of consumers.

Meanwhile, the number of over 65-year-olds in the UK is growing, with those reaching retirement age now having to plan ahead for 20-30 years as longevity increases. Producing financial plans which reflect the changing nature of financial life for older people means that the demand for retirement planning will grow.

Finally, developments in technology have led to greater consumer demand for personalised services based on their data and preferences and advisers will increasingly be expected to provide digital access to investments and advice, says Dynamic Planner.

Goss said: “These three mega trends pose three immediate as well as longer term challenges and opportunities to the financial planning industry. With hundreds of thousands of people reaching retirement age in the UK every year, solving these three challenges will provide firms with large and growing opportunities.

“Adopting a robust, risk-profile based investment planning process with technology which has been built to support mobile-first interaction with clients and colleagues and demonstrate your value is vital to successfully operating today as well as future-proofing your practice.”

Professional Paraplanner