If suitability is the question, culture is the answer

The Assessing Suitability Review of the financial advice sector marks the beginning of a communication programme from the regulator and is to be repeated in 2019. A customer-centric culture, embedded throughout all areas of an organisation, is the only way to meet expectations effectively, argues Andy Sutherland.

Andy Sutherland is managing director of advisory services at TCC. A former financial adviser and compliance officer, he assists clients with managing conduct risk and providing solutions that enable business growth. He was previously director of regulatory consulting at Huntswood, spent four years working within the regulatory advisory practice at EY and six years as an independent contractor on large-scale and high-profile regulatory projects as well as past business reviews.

The recent findings from the Financial Conduct Authority’s Assessing Suitability Review highlight failings in the financial advisory sector around initial disclosure and the overall quality of suitability reports. Importantly, the much-anticipated report demonstrates that suitability remains one of the largest inherent risks in the sector, despite repeated communications from the regulator.