A robust suitability process is the best way to ensure client trust and so help an advice business survive "inevitable" future market crises, according to FinaMetrica co-founder Paul Resnik.
Resnik (pictured) said compliance with regulation was the minimum standard advice firms should be aiming for and that trust was the optimum goal. "Regulation is at such a low level you diminish your businesses integrity by targeting that level," he explained. "It is better to say I want to be trusted - trust is the premium. And I would argue that suitability is a synonym for trust." He highlighted a recent report from Vanguard, focusing on trust and financial advice, which found of those who were satisfied with advice, 97% also had high trust in their intermediary. Similarly, those...
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