The Financial Services Authority (FSA) is urging firms to consider their professional indemnity insurance (PII) situation and client communications ahead of Retail Distribution Review (RDR) implementation.
In its latest guide for advisers on their preparations for the RDR, the FSA once again highlighted the key areas advisers need to focus on, including qualifications, implementing adviser charging and working out whether businesses will go independent or restricted.
For firms looking to remain independent, the regulator stressed the need for firms to hold PII which covers them for the "full range of retail investment products" they need to consider, or hold additional capital for any product types excluded by their policies.
Meanwhile, businesses struggling to explain their new charging structures to clients were encouraged to first discuss the plans with a selection of clients to obtain feedback.
Introducing the guide, it said: "We have been speaking to a number of you to assess how prepared you are and the vast majority of you have told us, or we have verified, that you are on track.
"Many of you have also told us that implementing the RDR has been a very positive experience - not only did it encourage you to undertake a root and branch review of the way in which you do business - you are confident that many of the changes being made will bring about significant and profitable changes to your businesses."
Firms still considering how they will demonstrate their indpendence post-RDR were also told they could do this through their training and continuing professional development (CPD) plans, which would show how they
are retaining their knowledge.
Records of in-house investment research on specific investments, carried out as part of the advice process for clients, could also demonstrate this.
Read the FSA's ‘Make sure you're on track for the RDR' guide HERE
Behaviours, animals or something else?
Questionnaires sent to firms
Expecting to recover around £200m
Financial regulators renew anti-pensions scam campaign