What is Fact Find?

Full Definition

A fact find is the structured process by which a regulated UK financial adviser gathers detailed information about a client's personal and financial circumstances -- income, outgoings, existing savings, investments, pensions, debts, family situation, health, employment, attitude to risk and capacity for loss, and short and long-term financial goals -- before making any personal recommendation, as required by Financial Conduct Authority rules on giving suitable advice. The fact find is typically conducted through a mix of a structured questionnaire and a face-to-face or video discussion, and forms the factual basis on which the adviser later prepares a suitability report explaining why a particular product or course of action is being recommended, with both documents together creating an audit trail that regulators and the Financial Ombudsman Service can review if a complaint is later made about advice given. A thorough fact find is also intended to protect the client as much as the adviser, since a recommendation made without properly understanding a client's full circumstances -- for example, recommending an investment with a five-year tie-in to someone who did not disclose they might need the money sooner for a house deposit -- is more likely to be unsuitable and could be successfully challenged later. Clients are generally advised to answer fact find questions as completely and honestly as possible, including disclosing existing products, other debts, and any circumstances that might affect their capacity for loss, since incomplete information can undermine the value of any advice given, however carefully the adviser has otherwise carried out their side of the process.

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