Agreed with the FCA, the private bank is looking at advice given in the UK in respect of investments held at the date of its implementation of RDR on 26 November, 2012.
Prior to this date, Coutts says its “previous weakness” lay in record-keeping, much of which was paper-based. Records are now captured and held electronically and in writing.
The review of all clients’ investments is not expected to be concluded until early 2015. If an investment is found to be unsuitable a redress offer will be made, though the final cost of compensation is unknown at this time.
Michael Morley, CEO Coutts UK, said :"Looking back, there have been some instances where the advice given during our previous advice process could have been better, and we are working hard to address that.
“We want our clients to be absolutely certain that every investment made by them is indeed suitable, and continues to be suitable. If not, we will ensure that portfolios are appropriately adjusted, and if clients have suffered any financial detriment, they will be compensated in full.”
Initiated by FSA, the ‘Dear CEO’ letters were sent to wealth management firms amid “significant, widespread failings” found in a sample review. Assessing suitability has since become a large part of the FCA’s work in the retail advice marketplace.
