The suitability costs of a well known Private Bank reach £139 million.

Coutts’ suitability review was due to be completed in 2015. This is now 18 months over due, but the firm say it is now at a ‘well advanced’ stage.

The review undertaken is substantial as it covers every client investment dating back to 1957. Shortly after the review began in 2014 Coutts set aside £110million to cover potential client redress. It then made an additional provision of £90 million pounds, with £64 million of this set aside for ‘redress payable in respect of the provision of client advice’.

This is a substantial review, with some large figures set aside to deal with potential redress for clients. Whilst many firms may not have to carry out reviews to such a scale, it should certainly highlight how important suitability of advice is within the financial services industry.

It is vital that all staff understand what is expected of them in terms of demonstrating and evidencing the suitability of advice they provide to clients. The regulator is focusing on the issue of suitability as it directly affects one of their key objectives, ‘protecting customers’.

Here at FSTP we are able to provide in-house training for teams involved with providing advice, so that they are aware of their regulatory responsibilities. This popular course on demonstrating and evidencing suitability is running as an open course on the 22nd September.

We also provide file quality review for many of our clients to help ensure that their documentation is meeting the current regulatory standards. Please contact us on info@fstp.co.uk to discuss our Audit and file review services.

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