When it goes wrong

Marc

Registered User
Messages
1,865
This is a case from the UK but it highlights the importance of the due-diligence process.

https://news.sky.com/story/police-i...ay-home-cash-in-10m-company-collapse-11492763



We recently wrote a blog about the need for advisers to periodically review their Investment proposition and consider what is in the best interests of their clients.

In the UK the FCA has published guidance for advisers and Irish advisers should take a look at this in order to better equip themselves with a process for systematically conducting research and due-diligence on service providers.

In summary the FCA said;

"We undertook this project as previous thematic work and instances of consumer harm have shown that the poor quality of an advisory firm’s research and due diligence is one of the three root causes for poor consumer outcomes. The other two root causes are [broken link removed] and costs, for example, in relation to replacement business (where a client switches an existing investment or sells it and invests the proceeds in a new product under the recommendation of an adviser).

TR16/1: Assessing suitability: Research and due diligence of products and services [PDF]

Our findings
In the main, we found that firms sought to achieve positive outcomes for their clients when undertaking research and due diligence, and generally firms demonstrated some good practice in this area.

However, many firms did not show consistently good practice across all products and services. The poor practice we identified varied from issues that are easily addressed to those that are more significant.

We were disappointed to identify issues relating to platform research and due diligence, particularly having previously published our expectations around this topic."

The lesson here is that advisers need a documented process that includes their Target Market Assessment, their selection and due diligence process for service providers and their ongoing monitoring and review process.
 
Last edited:
But Marc, where can I get the cheapest fees, ‘cause that’s by far the most important thing in the world???
 
But Marc, where can I get the cheapest fees, ‘cause that’s by far the most important thing in the world???
Am I the only poster on hear who gets the feeling former protected and simi protected sectors who once could and did charge what the liked without offering much in return are now feeling the pinch ?,

Most of the low hanging fruit with the rich pickings is gone sorry,

Some need to start sharpening there Pencil and stop complaining it is still good but they will have to work a little harder for there money,

you do not need to go any further than RTE ? ?? to see bad advice and trusting people who charge high fees can Get you into trouble do I need to say any more,

Look at all the sectors in Ireland where people were well paid and trusted and the very bad service and contempt the showed the people who trusted them,
 
Last edited:
This is a case from the UK but it highlight the importance of the due-diligence process.

https://news.sky.com/story/police-i...ay-home-cash-in-10m-company-collapse-11492763



We recently wrote a blog about the need for advisers to periodically review their Investment proposition and consider what is in the best interests of their clients.

In the UK the FCA has published guidance for advisers and Irish advisers should take a look at this in order to better equip themselves with a process for systematically conducting research and due-diligence on service providers.

In summary the FCA said;

"We undertook this project as previous thematic work and instances of consumer harm have shown that the poor quality of an advisory firm’s research and due diligence is one of the three root causes for poor consumer outcomes. The other two root causes are [broken link removed] and costs, for example, in relation to replacement business (where a client switches an existing investment or sells it and invests the proceeds in a new product under the recommendation of an adviser).

TR16/1: Assessing suitability: Research and due diligence of products and services [PDF]

Our findings
In the main, we found that firms sought to achieve positive outcomes for their clients when undertaking research and due diligence, and generally firms demonstrated some good practice in this area.

However, many firms did not show consistently good practice across all products and services. The poor practice we identified varied from issues that are easily addressed to those that are more significant.

We were disappointed to identify issues relating to platform research and due diligence, particularly having previously published our expectations around this topic."

The lesson here is that advisers need a documented process that includes their Target Market Assessment, their selection and due diligence process for service providers and their ongoing monitoring and review process.
I suspect you are correct there are some out there who charge and offer very little in return now resent having to do a bit more to earn there money because people are better informed ,

There are others out there who charge and provide a good service taking business off the above without getting involved in a race to the bottom, But still need to be on top of there job updateing there advice and systems as time goes on ,
 
Last edited:
But Marc, where can I get the cheapest fees, ‘cause that’s by far the most important thing in the world???

And that's why I don't use DeGiro. They may be perfectly fine but I question how they can charge so little and be a profitable business. Also, if they go bust, it is more difficult in dealing with something in Holland than Ireland (although, looking at how the Custom House Capital clients have been left dangling in the wind for the last 7 years, I may be very wrong!!).


Steven
www.bluewaterfp.ie
 
Back
Top