Crystal Software Solutions, which provides software to the financial services industry, says the Financial Services Authority’s principles-based approach doesn’t give clear guidelines about what information brokers are expected to provide.
It says this makes it hard for brokers to deliver compliant advice tailored to clients’ needs.
Patrick Shuker, director of Crystal, says: “The FSA makes it difficult to adhere to regulation as many brokers are unclear about what the rules are, which leaves the requirements open to interpretation.”
Shuker says brokers need to check their current software can meet the regulatory demands of TCF, including fact-finds and suitability letters.
He adds: “TCF is an issue that causes considerable angst for many brokers as they are applying best practice but often have difficulty demonstrating this.
“By December’s TCF deadline, we urge brokers to have spoken with their point-of-sale providers to ensure that the systems they use not only provide compliant sales but can produce supporting evidence to prove it.”