Recognising business and compliance risks are interrelated and thus using appropriate strategies to manage them is crucial in the financial services sector, writes Chris Davies
One of the biggest risks we see retail intermediary advisers (RIAs) make is confusing business and compliance risk. Recommending a product deemed suitable to meet current client needs, for example, does not make it a good risk when viewed from a business legacy viewpoint. That is because client circumstances change, which means their perceptions change and thus their trust and informed consent is at risk if they are not serviced correctly. In turn, lost trust and complaints become a business risk via fines and damaged reputation or worse. With regulations on the increase and the need ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
