Backstage with Keith Richards – 23 March 2021

Despite starting 2021 in lockdown, both the Society and our members are making the most of these challenging times; coupled with a more positive focus on the increasingly ‘bright light’ at the end of the COVID-19 tunnel, the personal finance profession continues to demonstrate its relevance and value.

15^th Anniversary of the Personal Finance Society

The PFS celebrated its 15^th anniversary in 2020. Incorporated in 2005 and with the launch of the Chartered Financial Planning status later the same year, the Personal Finance Society has evolved to be the sector’s leading professional body with c40,000 members.

The Personal Finance Society has gone from strength to strength since the Retail Distribution Review and as further testament to the various achievements and success of the PFS and the profession over the past eight years, its financial position has also strengthened ensuring even greater financial resilience and sustainability.

I would like to acknowledge and thank the Society’s current and past board members as well as our regional officers, Power Practitioners and you our members, without whom our continued success would not be possible.

Is your firm prepared for Directory Persons (DPs) submission deadline for solo regulated firms?

All firms with Directory Persons must have certified / assessed their staff and submitted the relevant information to the FCA to ensure they remain compliant with FCA regulatory requirements before 31 March 2021.

Solo-regulated firms wishing to submit information using the multiple forms should have done so by 18 March to ensure they are processed in time. Firms wishing to make a submission after this date should use the single-entry form but can commence using the multiple form from 1 April.

For the imminent deadline, the FCA expects a potential high volume of submissions and encourages firms to submit their information early to avoid delays in the reflection of their data on the Register.

For more information about the Certification Regime and a full list of the certification functions under the SM&CR, please review the Guide for FCA solo-regulated firms and the Policy document. The FCA’s Directory website also includes user guides for firms and commonly asked questions.

Barriers to helping clients in vulnerable circumstances revealed

Our members have revealed the greatest challenges they face when advising clients in vulnerable circumstances.

An online poll showed the biggest barrier professionals face when trying to assist consumers was being able to openly discuss the nature of the individual’s vulnerability with them, with 36% saying they struggle to talk about the nature of vulnerability with the individual affected.

Being able to assess cognition was identified as the biggest barrier to assisting clients in vulnerable circumstances by almost a third of the financial advisers who were surveyed. One in 10 financial advisers revealed they struggle to identify vulnerability and around one in five revealed they worry about grasping the needs of clients in vulnerable circumstances.

Covid-19 has shone a light on how quickly anyone can find themselves in vulnerable circumstances. Vulnerability can manifest itself in physical, mental or an emotional form, is dynamic in nature (short lived or longer term, sometimes permanent, transient, recurring or fluctuating over time) and may be hidden.

If the profession is to be considered a safe pair of hands, we must recognise the signs of clients in vulnerable circumstances, rather than seek to label individuals as vulnerable clients. It is important that we all develop a heightened awareness of the indicators of vulnerability and have the knowledge, skills and processes in place to enable appropriate and professional safeguarding, support and advice.

Most of us will be vulnerable at some stage in our lives. It is vitally important that financial advisers recognise the complexities and uniqueness of an individual’s vulnerability and how it impacts on them if we are to support them in the most appropriate way.

We are actively addressing these challenges by playing a pivotal role in the creation of an independent Financial Vulnerability Taskforce with the aim of supporting the profession to better recognise and address the various forms of consumer vulnerability, improve client outcomes and increase access to financial advice.

I urge you to consider adopting the Financial Vulnerability Charter and committing to nine core consumer guide pledges.

Please do take a few minutes to learn about our Financial Vulnerability Taskforce and to then register your support.

Undergraduates offered financial advice bootcamps

The Personal Finance Society is teaming up with Next Gen Planners to deliver bootcamps for university students interested in a financial planning career.

The bootcamps, which will be held virtually due to coronavirus restrictions, will kick off with an explanation of the types of careers available in financial planning and employers and coaches will give an overview of the profession.

Undergraduates will be encouraged to demonstrate the skills they have that would make them ideally suited to become a financial adviser, before being split into groups to explore a dilemma and discuss how best to resolve it.

The first round of boot camps will be held at Coventry, Edinburgh Napier, Glasgow Caledonian, Liverpool John Moores, Manchester Metropolitan, Nottingham and Middlesex universities in April, with more to follow across the country.

We are proud to work with Next Gen Planners to deliver these bootcamp sessions and encourage a fresh and diverse array of talent to enter the financial planning profession.

These bootcamps are a great opportunity for financial planners to engage with universities in their local area and connect with undergraduates to give them a taste of a rewarding personal finance career where professionals can help rebuild back better the financial fortitude of the UK.

If you are interested in taking part in the bootcamps and giving students a taste of what they can expect from the profession, email educationpartnershipscoordinator@cii.co.uk.

Best Wishes,

Keith