Annual Suitability Reports

Annual Suitability Reports. 

Periodic Assessments. 

Yet another compliance document.

Whatever you call them, under MiFID II, there is now a need to review recommendations given, at least annually (more frequently if higher risk) and reconfirm to the client that the advice remains appropriate. 

Alongside this is the ex-post cost disclosure – the requirement to show (as much as possible) in pounds and pence, what a client has paid over the year.

There are many ways of approaching this, whether as a standalone item, part of an annual review, incorporated into any advice, or a simple check in with the client, leaving the ex-post disclosure to come from their platforms / providers.

Our sister company Para-Sols recently created a one page ASR, which pulls together the suitability review requirements under MiFID II, while also incorporating the cost disclosure, and giving some portfolio information, for a better overall client experience.

Click here for a link to see how they’ve done it, and maybe get some ideas on how you approach it in your firm.

And if you’re still not certain about how to do it, feel free to drop us a line and chat through your options with us.