Expert: Farzana Khalil, Director Consultant, Solve Facilitator: Leigh Fisher, Head of Business Development, EMEA, Door
Highlights:
- Collaboration between paraplanning teams, advisers, and compliance is becoming increasingly important
- Paraplanners need to feel empowered to challenge advisers' recommendations, when necessary, particularly in cases where client suitability or vulnerability may be a concern
- The role of AI and transcription services in capturing and documenting client interactions needs more emphasis when it comes to improving efficiency and record-keeping
- The role of AI should be seen as supplementary to the human expertise in the near future
Context:
Delegates discussed the significant changes and new processes introduced due to Consumer Duty. One firm has implemented a rigorous process of sending post-review emails to clients, with administrators grading the advisers' emails for compliance. Another firm is focusing on documenting client vulnerability assessments and ensuring appropriate service adjustments. The discussion highlights the challenges of balancing regulatory requirements with providing a seamless client experience.
The session also explored ways to simplify communication materials, such as suitability reports, to make them more client-friendly and easier to understand. Challenges include navigating different compliance department requirements and finding the right balance between regulatory compliance and clear, concise communication. The use of video summaries, avatars, and AI-generated content were discussed as potential solutions.
Maintaining data quality and robust audit trails was highlighted as a critical aspect of complying with Consumer Duty. Delegates shared experiences with regulatory reviews and the importance of demonstrating evidence of client engagement efforts. The use of centralized systems and AI-assisted documentation was discussed as a potential solution for improving data management and audit trails.
The discussion then touched on the inconsistent responses from product providers in providing the necessary data and information to meet Consumer Duty requirements as well as the potential of AI and innovation in areas such as meeting transcription, suitability report generation, and client communication.
Key takeaways:
- Explore the use of AI-powered meeting transcription services to capture and document client interactions more effectively
- Investigate the potential of AI-assisted suitability report generation and client communication tools to simplify and personalize materials
- Encourage collaboration and open communication between paraplanning teams, advisors, and compliance departments to address Consumer Duty challenges
- Implement centralized data management systems and robust audit trails to demonstrate evidence of client engagement efforts and vulnerability assessments
- Engage with product providers to ensure timely and consistent delivery of necessary data and information to meet Consumer Duty requirements
