Reviews and Ongoing Suitability

It’s such a pleasure when we write review reports for clients year after year, to see them progressing towards their objectives, or making their dreams a reality.

If you’re being paid a fee for ongoing advice, you’re obliged to assess the ongoing suitability of the arrangements under your management. However, there’s a huge disparity in how this is done between advice firms, and sometimes even within firms.

From 20 pages reports to one line emails, we’ve seen it all. Our service is based on what we believe to be best practice.

What does a good review report look like?

Our Annual Review include the following:

  • Summary of changes to the client’s circumstances since the previous review.
  • Assessment of the impact of these changes on the client’s finances.
  • Comment on attitude to risk and capacity for loss.
  • Comment on any changes needed.
  • Plan valuations
  • Performance analysis of the underlying holdings.
  • Assessment of the ongoing suitability of the provider, product and investment strategy.
  • Disclosure of estimated charges for the year ahead, including MIFID II charges.
  • For those in drawdown, comment on sustainability and comparison to an annuity.

Depending on the scenario, we might also include a cashflow forecast or estimated retirement income.

Case Study

Drawdown review

We were asked to write an annual review report for a client in drawdown. He was over 75, and the pension provider charged an additional amount for using Income Drawdown from that age. He was drawing a relatively high level of income and was at risk of depleting the pension pot over time. We suggested turning off the drawdown income, giving the pot some time to recover, and drawing down on other assets which were within the taxable estate instead. This saved the client paying drawdown fees and reduced the IHT payable on their estate.

If you need help with your annual reviews and ongoing suitability assessments, give us a call.