22 Sep IFA Claims Reviewing Processes Like the RDR Can Have Commercial Benefit

An adviser has attempted to dissuade fellow IFAs from seeing reviewing systems and regulations, such as the upcoming RDR, as a burden. He instead argues that such systems can be used to a commercial advantage by advisers as they help to create a set of standards that clients can trust and that can be adhered to by the IFA. James Carter, principal of London-based mortgage adviser Independent James, commented "Reviewing your systems and controls to meet regulatory requirements can often prove a useful audit for your business processes. "I certainly found this during my own treating customers fairly gap analysis. It is necessary for treating customers fairly and may seem burdensome but can be used to IFAs' commercial advantage." He believes that the extra trust created amongst customers and the IFA when the customer believes that they are being treated fairly can be integral to further business relationships and may also help to open doors for the IFA. In addition, the breaking down and re-examination of current systems can be useful for the IFA as well, allowing them to discover and highlight areas of the processes that may not be up to standard whilst also opening up further business opportunities in the process. Mr Carter continued "I reviewed my factfinding processes and identified private medical insurance was not being reviewed. I simplified this process and since then I have had a significant upturn in PMI business. "IFAs specialising in pensions and investments have had to review their processes in light of the retail distribution review and are now offering protection products more regularly to their clients as a new income stream."