Ifa record keeping

coxwell

Hi
Can anyone advise what records an IFA must keep with relation to a client and their investments and for how long?

regards
dc

dunstonh

Timescale is 6 years after the investments no longer exist as a minimum but typically most will hold on forever (which is allowed).

Records will vary but typically it will be factfind, research, due diligence, misc notes and suitability report or audit trail of recommendation or transaction details.

There are actually no rules as to what should be kept and in what format or what should be written. The FSA says an IFA should "know your client" and be able to show that.

mania112

They must keep a record of the transactions for 5 years.

But personal data can be removed upon your request (and you can request to see what data they have).

EDIT: Looking at the post above... 5 or 6, that sort of ball-park

EDIT 2: Should clarify too, personal data relating to the transaction cannot be removed, i'm thinking more along the lines of your phone number/email etc etc

coxwell

do the COBS Sch 1 Record keeping requirements in the fsa handbook apply?

dunstonh

5 years as a minimum, 6 years as a data protection recommendation. Most compliance firms recommend the advice part indefinitely. (I used 6 as it was the longer of the two periods)

do the COBS Sch 1 Record keeping requirements in the fsa handbook apply?

apply to what?

But personal data can be removed upon your request (and you can request to see what data they have).

But data which impacts on the advice can be refused to be removed.

mania112

coxwell wrote: »

do the COBS Sch 1 Record keeping requirements in the fsa handbook apply?

Not sure what you're asking, but anything in the FSA handbook does apply to any firm registered and authorised by them.

bigfreddiel

seems to be some confusion here is it 5 or 6yrs - par for the course i guess

fj

bigmatt1174

Pension Transfers information has to be held for ever"

dunstonh

seems to be some confusion here is it 5 or 6yrs - par for the course i guess

No confusion at all. The FSA minimum is 5 years. However, it recommends 6 years for data protection requirements and in some cases indefinitely.

Freecall

I am not an IFA but I do know that the Limitation Act 1980 puts a Statute of Limitation of 6 years for Recovery of trust property and breach of trust as well as Simple Contracts and Torts.

Therefore it would be advisable for anybody who may be in a position to face litigation in these areas to keep all records for at least this length of time.

mania112

I would suggest that most IFA's will keep data forever.

It wouldn't be very professional for an investor who calls back 10 years after setting up an ISA (for example) to say 'I've just inherited some money (for example) and I'd like you to help me again' - for the IFA to not have any record of it.

Clearly, there needs to be minimum standards, but I wouldnt expect anyone to be removing data.

Personally, we have an 'archiving' system so after a [unspecific] time we 'digitise' the essential paperwork and put the paper file into storage (whilst maintaining an 'outlook-esque' contact).

It hasn't happened, but if a client asked to remove their personal information, I assume we would remove the Outlook contact and similar personal information from the paper file - but I think (if it was legal to do so) keep the essential information about the transaction.