Compliance does not have to be complex. ValidPath’s Compliance Director explains how we provide compliance support for new Members of our IFA network.
By Nicola Butterworth, Financial Advice & Compliance Director
It’s no secret – compliance is intimidating. Even when you’re confident that you are fulfilling the demands of the Financial Conduct Authority (FCA), recording and evidencing your compliance can feel like a huge challenge in and of itself. To make things trickier, the FCA has ramped up its scrutiny of IFAs in recent years.
This scrutiny is not limited to individual advisers and the way they work with their clients. IFA networks like ValidPath are also required to demonstrate compliance across their entire Membership. The FCA now requires networks to provide network-wide data on compliance practices, ensuring that all Members adhere to the highest standards.
So how do we tackle growing FCA demands? How do we ensure that our Members are receiving the individualised support they need to remain compliant while focusing on their clients?
Joining the ValidPath network as an Independent Financial Adviser brings you many advantages. At the forefront of those advantages are the guidance and tools we provide to help you navigate the intricate landscape of compliance.
Integrated Tools, Hands-On Support
Typically, IFA networks attempt to meet new FCA compliance demands by imposing increasingly rigid requirements on their Members, putting the burden on new Members to change their practices. At ValidPath, we believe that joining an IFA network shouldn’t feel like you’re being given more challenges, it should feel like you’re getting more support.
That’s why we’re determined that no ValidPath member faces alone the challenges that come with compliance. Our goal is to empower you with the tools and resources necessary to thrive – without compromising your independence.
Instead of overloading you with a list of new compliance templates that you need to fill out, ValidPath provides Members with robust compliance support through our dedicated Support and Monitoring teams.
These teams primarily consist of staff with backgrounds in advising or paraplanning. They understand the unique challenges you face from your perspective, not just the network’s. If a new member expresses uncertainty about interpreting FCA guidelines, our team will provide tailored, practical advice to clarify and support them.
We also provide integrated technology that helps to streamline the compliance process, making it smoother and more efficient. Our integrated software, for example, allows Members to easily track and manage their compliance documentation in one place. This not only saves time but also ensures that all records are accurate and readily available for audits.
With our support, you can navigate the complexities of compliance without sacrificing your time or quality of service. This approach empowers our Members to focus on delivering high-quality financial advice rather than getting bogged down by both FCA and network compliance demands.
Common Compliance Concerns
In our experience, new ValidPath Members often face two primary compliance-related concerns:
- They worry about networks imposing many restrictions
- They worry about networks giving them too much freedom
Too Many Restrictions
The first concern usually comes from directly authorised (DA) firms that have previously enjoyed a degree of flexibility in how they record compliance. Joining an IFA network comes with the assumption of far stricter compliance requirements, which causes anxiety for these firms.
In reality, however, our compliance approach allows for a range of business models – we are more concerned with “why” you do something, rather than “how” you do it. For the requests that we do make in order to comply with FCA requirements, we strive to support you every step of the way. But what does that look like in practice?
We prioritise effective compliance recording that suits your existing business model and how you work with your clients. Our file review team is dedicated to interpreting the compliance evidence submitted by our Members, meaning we don’t impose ways of working purely for our own convenience.
For example, if you have a unique way of documenting client interactions, we will work with you to ensure that it meets regulatory standards with the minimum change to your existing processes so you can concentrate on delivering quality financial advice.
Too Much Freedom
That’s where the second main concern comes in. For many IFAs, the level of freedom that ValidPath offers Members when recording compliance can, itself, be intimidating.
This is especially true for Members coming from other networks, where compliance expectations may have tightened over time. That’s where our Support and Monitoring teams come in, offering one-on-one support to help Members understand and implement compliance frameworks.
You Need Guidance, Not Guidelines
Our philosophy is straightforward: we’re not here to give you guidelines, we’re here to give you guidance.
We want to ensure that you feel confident in your compliance practices, empowered by your independence to operate in a way that suits your business while still meeting regulatory standards. We’re here to support you, not to dictate how you run your practice.
Then, our integrated technology can help to ensure that, as you make progress documenting your compliance requirements, you’ve got it all in one easily accessible place for the future – and the FCA.
At ValidPath, we genuinely believe Independence is EverythingTM. Just because FCA requirements are growing, and while we have to ensure that we have access to necessary reporting data, that doesn’t mean that we should impose unnecessary obligations on our Members. Our Members get the support, tools and guidance they need to focus on what matters most – delivering top-quality financial advice to their clients.
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