Cashflow modelling: FCA interest should spur firms to review usage

While the Thematic Review into Retirement Income publication in March has been at the forefront of much discussion in recent months, it is important not to overlook an important Financial Conduct Authority (FCA) article that flanked the publication. This article was on the use of cashflow modelling to demonstrate the suitability of retirement-related advice.

Cashflow modelling came to prominence recently after the FCA raised concerns about how firms monitor income sustainability. While the FCA stopped short of stating all firms should adopt cashflow modelling, it did reference the tool's "significant role" in educating a customer around the strategy being recommended and assessing capacity for loss.

In this Professional Adviser article, our Head of Policy, Sandy McGregor and Policy Manager, Kris Armstrong, urge advisory firms to revisit and review their use of cashflow modelling in light of renewed regulatory interest.

Read the article in full here:

https://www.professionaladviser.com/opinion/4357326/cashflow-modelling-fca-interest-spur-firms-review-useage