Client centricity isn’t just about saying the right things, it’s about proving you’re doing them. Under the FCA’s Consumer Duty, your board report must showcase more than intentions, it must demonstrate outcomes.
Firms doing this well have already embedded this into business as usual (BAU) operations. Their reports don’t start from scratch but summarise what’s already being recorded. Whether it’s client servicing rates, cashflow modelling completion for those in decumulation, or vulnerable client identification, the right MI tells the story clearly.
But many advisers tell us that they are still struggling.
A recurring issue? Lack of structured data. 31% of advisers that we polled on our recent webinar stated that they had difficulty turning theory into management information (MI). Advisers usually are client centric, but don’t gather the evidence to prove this. Small wins such as logging staff actions that gained praise for clients for going above and beyond, or noting changes made in response to client feedback, can become valuable MI content.
On our recent webinar, Tom Purcell, Compliance Consultant at Thistle Initiatives, shared his advice.
He stated that knowing the outcomes & objectives you wish to achieve at the beginning of the reporting period and then establishing & collating the MI to support that is one of the most straightforward ways to ensure you complete your board report in an effective way.
A key area of concern is often the fair value assessment. Advisers rely on manufacturer-supplied data without fully considering the layering effect of their own fees.
Be able to explain why you charge what you do and how this delivers value. Calculate the true time cost of reviews across admin, advisers & paraplanners.
Your report can then clearly state that we are comfortable that nobody pays over X, and if a client does pay more, you can explain why and if any action needs to be taken. Potentially reducing fees or considering additional client propositions for client cohorts. Tom recommends setting ‘guard rails’ for what they are doing.
Don’t overcomplicate. Especially for small firms, a tight summary addressing the FCA’s core questions is often better a long narrative.
- What outcomes are you aiming for?
- How are you measuring them?
- What have you improved?
- Which areas are you still working on?
Expectations are evolving. Some firms drafted their first report in May 2024, 11% of those on the webinar said they haven’t yet started. If you’re behind, begin by asking: What are we already doing well, and are we recording it?
Track not only performance metrics, but also what you’ve learned from them. If certain products aren’t delivering expected value, how have you responded? Showing responsiveness to insights, not just reporting them, demonstrates a commitment to continuous improvement.
Staff engagement also matters. Highlight ongoing training, especially around recognising vulnerable clients or applying fair value principles in practice. Empowering your team ensures client centricity isn’t isolated to leadership, it’s practiced across the firm every day. As Ash Weston, Head of MPS @ 8am said on our recent webinar, it is about showing that you “care about your clients and care about their journey.”
And finally, remember, this isn’t about perfection. It’s about showing your firm is on the right track, committed to fairness, transparency, and client outcomes. That’s what Consumer Duty demands and what client centricity looks like in practice.
Join us for our next CPD qualifying webinar at 11am on 25th September alongside Ben Wright of Melo, where we’ll be discussing the hidden risks and benefits of Discretionary and Advisory Model Portfolios.
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