Advisers must ensure that any advice offered is suitable and client-focused, based on the client’s circumstances, experience, needs and objectives. This requirement was first engineered through legislation by the Financial Services Act 1986, and continues to run under the Financial Services and Markets Act 2000.

In order to develop a factual portfolio of the client, most, if not all, advisers will complete a comprehensive fact find using extensive searches online and through paper-based methods. Prior to embarking on a fact find, fees for the services provided to the client must be disclosed and agreed.

To gather appropriate information, it is necessary to ask questions in respect of the client’s:

• Existing and future needs;
• Ability to provide for these needs;
• Attitude towards providing for them;
• Existing financial situation;
• Objectives;
• Knowledge and experience of investment (if relevant). This will support an assessment of the client’s capacity to understand and accept the risks involved in investment.