Increasing Obligations - Managing the Rules and Requirements

Financial Advisory

25 April 2024

AdviceCommunicationFinancial AdvisoryRegulationsustainableVulnerable clientWinning Advisers

Expert: Olivia Shaw, Head of Compliance, Tribe Facilitators: James Marshall, Principle Consultant, Bovil


  1. Concerns abound about overwhelming regulation, resource constraints, data management challenges, and the potential impact on the advice gap
  2. Despite the challenges, benefits like improved governance structures, enhanced client communication, and a stronger focus on positive client outcomes were all highlighted


The implementation of new regulations, including the Consumer Duty and Sustainable Disclosure Rules (SDR) were all discussed with the conversation delving into compliance strategies, challenges, best practices, and opportunities presented by these regulations.

Topics included governance structures, target market assessments, sustainable investing practices, collaboration among peers, and the use of technology for compliance and client service enhancement.

Collaboration and best practices:
The importance of sharing best practices and collaboration among peers is emphasized, with strategies including forming advisory groups and leveraging external resources.

Sustainable Disclosure Rules (SDR) and anti-greenwashing:
Participants discuss approaches to addressing SDR and anti-greenwashing guidelines, including due diligence on investment products and educating clients on sustainable investing.

Vulnerable clients and inclusive practices:
Strategies for identifying and managing relationships with vulnerable clients, such as conducting assessments and adapting communication methods, are discussed.

Future outlook and technological advancements:
Delegates expressed optimism about the cultural shifts and opportunities presented by the regulations, discussing the potential impact of technological advancements like AI on compliance and client service.

Key takeaways:

  • Due diligence - Conduct thorough due diligence on investment products, partners, and distribution channels to ensure compliance and alignment with sustainable investing practices
  • Governance - Implement robust governance structures and document processes to demonstrate adherence to regulatory requirements and deliver positive client outcomes
  • Communication - Enhance client communication and educational materials to improve transparency and understanding of sustainable investing practices
  • Collaboration - Foster collaboration among industry peers through workshops, events, and advisory groups to navigate regulatory challenges and share best practices
  • Technology - Explore technology and AI solutions to streamline compliance processes and enhance client engagement while ensuring compliance with regulations
  • Client focus - Conduct regular assessments and adapt communication methods to effectively serve vulnerable clients, ensuring inclusive practices and positive outcomes
  • Continuous review - Continuously review and update business strategies to align with the evolving regulatory landscape and client needs
  • Engagement - Engage with regulatory bodies and industry associations to stay informed about emerging guidance, best practices, and opportunities for shaping the future of sustainable investing and consumer protection