From 31st December the way financial advice is provided in the UK is changing in three key ways. Giving people confidence they are getting the correct advice is at the heart of these improvements, and Turcan Connell Asset Management welcomes their implementation. It's important that our present and future clients know what changes are taking place, why they are being introduced and what these mean for them and so we have produced this brief summary:
Improved professional standards
- All advisers now have to pass a more advanced qualification, subscribe to a code of ethics and keep their knowledge up-to-date though Continuous Professional Development.
- This is to make sure advisers know how to assess client needs properly and to make sure they give the right advice and recommend the most appropriate products and services.
- Technical knowledge and expertise has always been core to the service offered by Turcan Connell Asset Management and our standards already surpass the new requirements. We will continue to be committed to exceeding minimum requirements put in place by regulators.
Knowing how much advice will cost
- Advisers now have to charge clients an explicit fee for advice. It is no longer possible for the cost of advice to be covered by a commission paid to the adviser from a company providing a new investment product.
- The new system means that clients will know exactly how much they are paying for advice, and are assured that their adviser will not be influenced by the amount of money they could earn from recommending one regulated investment product over another.
- Financial advice at Turcan Connell Asset Management has always been charged on a fee basis rather than by commission as we believe this is the only way to be truly impartial. While our business will not be substantially altered by the new rules, there may be some minor changes to how your fees are broken down and presented.
Knowing what type of advice you are receiving
- Advisers will now have to declare to a client whether they are 'restricted' or 'independent' in terms of the advice they can offer.
- This is to make sure clients are aware whether they will receive advice on all of the financial products that may be right for them, or whether the adviser is limited to recommending a certain product provider or type.
- Turcan Connell Asset Management produces its own investment products that have been selected and designed by us to be best of breed for our typical client groups and as such fit the needs of many of our clients. If suitable, we typically recommend these and for this reason we are deemed to be 'restricted'. If our investment products are not suitable we will recommend a different approach, based on our ability to advise on the widest range of investments across the market. All clients of Turcan Connell Asset Management can be sure they will be given the most suitable investment products for their own particular needs.
For more information on how the Retail Distribution Review will affect you, as an existing or potential client of Turcan Connell Asset Management, please contact your usual adviser or follow the 'Contact Us' link below.
Download the document here.
This content was generated prior to Turcan Connell Asset Management Limited operating as Tcam.