That said, this is exactly why we have an army of fresh eyes examining our every move to ensure that this type of inadvertently misleading conduct does not occur. However, I would just question if firms are really reviewing file notes with the scrutiny they review suitability reports.
Ensuring verbal disclosure of important material facts is arguably more important than writing these facts down in a huge suitability report.
Confidentiality and transparency
Confidentiality and transparency are relatively simple concepts.
Do not show off down the pub about how rich or well connected your clients are, and tell clients everything.
I am disappointed by how few advisers publish their fees on their website and have long argued that the FCA should standardise a rate card that advisers should publish in the same manner that applies to certain legal services.
Consistency
Consistency is almost impossible to ascertain, but luckily this is not really the fault of the adviser.
There was Mifid in 2007, RDR in 2013, GDPR in 2016, Mifid II, IDD, and the SM&CR in 2018, CD now in 2023.
With the alphabet soup of legislation over the past 10 years it is not surprising that how we provide advice has changed on a near-annual basis, meaning the service (while hopefully improving) certainly has not been consistent.
This poses a risk to the public trust and the constant changes from the regulator have potentially damaged this trust.
Serving the public
Finally, serving the public is a difficult thing for advisers to do.
We are businesses and must make profit else we go out of business, which serves nobody. However, we must also engage with the public and "give something back".
I volunteer for charities and community organisations, but understand that not everyone has the time and patience to do so.
I have every sympathy with the FCA in its plight to regulate our industry. It is there to regulate insurance companies, investment companies and then a small group of financial advisers.
But the top-down strategic regulation that is entirely necessary for the insurance and investment industries is a technically complex fit for advisers that require a bottom-up approach.
To conclude, advisers are unlikely to be seen as a profession due to the lack of trust there appears to be. The real question is whether we are heading in the right direction.
My opinion is that advisers are, in general, trying to work in the right direction. The issue is that, sadly, the directionality of the regulator is not helping as it seems to seek to industrialise the regulation of financial advice.
