Nearly a third (32%) of advisers have conducted ad hoc reviews of their Centralised Investment Propositions, according to research by Morningstar Wealth and the lang cat.
The research, based on responses from more than 150 advice professionals, found Consumer Duty and regulation was the single most frequently cited trigger. Advice firms also noted ‘scale and target market requirements’ as well as fair value assessments.
Of the advisers that have carried out ad hoc CIP reviews, regulation and compliance was the most common reason (22%), followed by a pull towards a new proposition or filling a gap (16%). One in seven (14%) cited provider or fund-level change, while the same proportion (14%) also quoted a change in owner as the reason.
Morningstar Wealth said advice firms typically conduct CIP reviews annually, every six months or in some cases, once a quarter, however ad hoc reviews are in addition to these, usually triggered by an event outside of the usual CIP review cycle.
Steve Owen, head of proposition (EMEA) at Morningstar Wealth, said: “What stands out is that regulation and compliance is the most commonly cited trigger for ad hoc CIP reviews, but these reviews should not be seen as purely regulatory exercises.
“Consumer Duty has put fair value, target markets and client outcomes even more firmly on advisers’ radars, while in practice firms are also looking at proposition gaps, provider changes, costs, performance, ownership changes and operational resilience. Good compliance and good business are often two sides of the same coin.”
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