View more on these topics

Compliance tip of the week: Don’t allow fantasists in your firm


A common theme behind compliance disasters is the high prevalence of “fantasist” behaviour. 

Some advisers believe they can recommend things of which they have very little knowledge and which an outsider could identify as pure guesswork. 

The response: “The clients want something out of the mainstream” does not answer the question.  Diners in an exotic restaurant still want a nutritious, safe meal.

IFAs typically have a higher risk threshold than most of their clients. The problem comes when they assume their customers must share their tolerance of bad outcomes. 

Most people do not want their personal finances to be exciting. Successful businessmen often prefer to take their biggest risks in their businesses which they understand rather than exotic funds and structures.

The fantasist adviser is someone who thinks his clients share his sense of excitement about the funds and products he or she sells (and which someone has often sold to him). 

Compliance, not to mention adequate professional indemnity cover, is for wimps. Lose these people as quickly as possible. 

Their inability to focus on their clients, not to mention the safety of your business, puts both in unnecessary jeopardy.

Adam Samuel is an independent compliance consultant



Profile: Rowanmoor boss Ian Hammond on 50 years in pensions

Rowanmoor Group managing director Ian Hammond chalked up 50 years in pensions this month and probably deserves a medal – or at least some form of acknowledgement for having digested so many changes over the years, including the recent Budget announcements and simplification that seems to have made things more complicated. Even with half a […]


Is the Nikkei 400 a good stock guide for fund managers?

The Japanese Nikkei 400 index launched in the summer of 2013 to showcase the country’s most shareholder-friendly and best-run companies but how effective is this as a guide for fund managers? The index was set up to review companies regularly based on a number of factors. The first rebalance of the Nikkei 400 was carried […]


AllianceBernstein launches ‘lifetime’ pension strategy

AllianceBernstein has combined its defined contribution default ‘target date fund’ investment strategy with Retirement Bridge, its new low-cost drawdown offering available from the age of 55. The launch is aimed at the vast majority of pension scheme savers who do not make an active choice about how their assets are invested during their career, or […]


Out of Context: “It is not quite the leftovers from the party but certainly the coffee and the petit fours.”

“It is not quite the leftovers from the party, but certainly the coffee and the petit fours.”  The Wealth Management Association’s John Barrass says the industry is being served the final course of European legislative reaction to the financial crisis. “The independent Scottish government bonds would be called kilts. We are hoping they don’t rise […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm