The new PROD rules mean advisers now need to factor client behaviour into their thinking but, if done correctly, writes Chris Davies, this can lead to a significant competitive advantage
The missing link between advice suitability and appropriateness of product in meeting client needs has been delivered for retail investment advice firms through the introduction of the Financial Conduct Authority's Product Governance or ‘PROD' rules - and particularly PROD 3.3 in the regulator's handbook, Distribution of products and investment services. This means adviser firms need to get their head around their strategy for assessing client needs and marrying this with the product, platform and investment structure in taking account of the manufacturer's identified target market - and...
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