Improving Compliance

Chesters can help you achieve better compliance in two ways.

Under Treating Customers Fairly you need to keep relevant management information (MI) to show that you are complying. If you cannot show how much trail income you receive for each client, you may have difficulty convincing the regulator that the level of service you deliver is fair.

The second Retail Distribution Review (RDR) release in November 2008 proposes to bring in tougher capital adequacy requirements and to relate these to your firm’s overheads. The higher your overheads, the more capital you will need to hold. Cutting overheads makes good business sense anyway, but now there is an extra reason to outsource to specialists.