"It will take more than one training session for firms to fully understand its intricacies."
IFAs want to fully understand their duty of responsibility under the upcoming Senior Managers and Certification Regime, research from Paradigm Consulting shows.
Two thirds of IFAs who attended the firm's recent workshops admitted they’ll still be looking for outside help and guidance before finalising training support or materials ahead of December’s deadline.
Alongside new responsibilities, advisers want to know what the 'reasonable steps' discussed by the FCA could look like in practice, what training would be required, and a further explanation of the code of conduct rules.
Many IFAs said they would be asking compliance support firms for further advice to ensure their firm complies with the new rules.
David Ryder, head of proposition at Paradigm Consulting, said: “SM&CR is one of the biggest changes that will affect IFAs in 2019 and, from speaking to people at our recent workshops in Tunbridge Wells and Bristol, it will take more than one training session for firms to fully understand its intricacies.
“This is because SM&CR is not really about ‘rules’, it’s more about the correct ethos and culture being applied from the top down within a business.
“But what we found really interesting from the events is that, even with time, many firms admitted they’ll be asking compliance support firms, like ourselves, for further advice to help confirm that their plans for SM&CR are robust and ensure their firm complies.
“While workshops can provide a clear explanation of the requirements for SM&CR to IFAs, there isn’t a one size fits all approach available here.
“The FCA will undoubtedly be taking a close look at firms after the deadline, so IFAs should act now.”