What information should I provide to an advisor?

theblond1

My employer offers pension advice via a third-party in respect of the company DC pension scheme and pays their fee.  That's lovely but the advisor's pre-advice questionnaire requires a very large amount of personal information, all of which they say is mandatory, that would be of immense value to a fraudster should there be a data breach.  I'm aware that the FCA requires advisors to 'know their customer' and understand that a certain amount of information is needed in order to suitably shape the advice, but in this case the questionnaire feels more like a mortgage application and I'm very uneasy about giving such a comprehensive compendium of very personal information - the medication we take for example.  I have searched for the FCA rules that specify the information that should be sought for this purpose but to no avail.  Can anyone point me to them?

dunstonh

That's lovely but the advisor's pre-advice questionnaire requires a very large amount of personal information, all of which they say is mandatory, that would be of immense value to a fraudster should there be a data breach.  

Advisers base their information on the facts supplied.  If you don't supply the facts, then the advice is unlikely to be suitable.    Adviser firms are regulated and are required to retain data securely. 

 but in this case the questionnaire feels more like a mortgage application

Factfinds vary with firms but they generally follow a similar template with a core set of questions that is likely to apply to a range of financial needs (name, dob, address, health, will, assets/liabilities, employment, income etc) and then selectable pages relevant to the advice area being covered.        A mortgage focused factfind would be different to a retirement factifnd (unless you were sent the pages for every advice area).

and I'm very uneasy about giving such a comprehensive compendium of very personal information - the medication we take for example. 

Health and medication are relevant to retirement planning.  Indeed, I have just finished a drawdown case this morning where I needed to get an annuity quote.  Not because we are doing an annuity but to show what an annuity could provide.  Medication was needed for that.

I have searched for the FCA rules that specify the information that should be sought for this purpose but to no avail.  Can anyone point me to them?

There are no such FCA rules.    The FCA leave it to firms to decide what is needed.   And with 35 years of factfinding, the software providers for advisers have built factfinds based on feedback following complaints data, FOS, FCA feedback, PI insurer requirements, common sense and compliance company recommendations/requirements.

Albermarle

I can understand the OP's anxiety on this point , It is something that I have also been  concerned about in the past . I have one friend who wanted financial advice but decided against it when faced with all these personal questions .

 Adviser firms are regulated and are required to retain data securely. 

But there must be scope for misuse amongst rogue advisors ? What penalties are there , apart from losing their ability to practice ?

dunstonh

But there must be scope for misuse amongst rogue advisors ? 

The is scope for misuse in all walks of life.   Data protection affects people in so many different ways nowadays.   Even someone's doorbell can put them at a data protection breach.

What penalties are there , apart from losing their ability to practice ?

Fines running into millions.  FCA suspension.  If it is found that the data wasn't secured and misused, it can effectively be the end of the company in respect of adviser firms and an inability for those involved to get another regulated role in financial services.

There is also a range of criminal offences.

bolwin1

Albermarle said:

 Adviser firms are regulated and are required to retain data securely. 

But there must be scope for misuse amongst rogue advisors ? What penalties are there , apart from losing their ability to practice ?

Misuse of data would fall under GDPR and fines of up to €20 million could be levied. This could be applied to individuals and / or the organisation depending on the nature of the breach. 

westv

What personal questions though? Surely all they need to know is where your money is currently, how much you earn and how much is being added to the money you have?

Thrugelmir

Albermarle said:

But there must be scope for misuse amongst rogue advisors ? What penalties are there , apart from losing their ability to practice ?

Rogue doctors, rogue solicitors, rogue accountants, rogue auditors. People in all walks of life aren't what they first seem. At a point you need to trust someone. One cannot spend ones life worrying about everyone. 

zagfles

And after all that you might find that the "free advice" is very limited eg to an hour's consultation with you having to pay if you want further advice. It might be worth looking into the extent of the "free" advice first.

wjr4

For the initial appointment, you won’t need to give them all that information. I don’t ask my clients which medication they take unless it is relevant to the advice, which is decided at a later point. 

Albermarle

Thrugelmir said:

Albermarle said:

But there must be scope for misuse amongst rogue advisors ? What penalties are there , apart from losing their ability to practice ?

Rogue doctors, rogue solicitors, rogue accountants, rogue auditors. People in all walks of life aren't what they first seem. At a point you need to trust someone. One cannot spend ones life worrying about everyone. 

I am not the type to be worry unduly about these things but I think it is a subject worth discussing ( as does the OP ) The professionals you mention only know a section of your personal info. A Doctor only knows your medical records for example . The FA/IFA questionnaires cover a much wider area, so in theory at least , the security of the data is even more important.

squirrelpie

The OP doesn't say what type of third-party it is or what advice they may offer. They don't say anything about their own circumstances either. I imagine the concerns for someone at the start of their career could be very different from those of somebody very near to retirement and require different advice with different needs for information.

I hope the third-party is independent, an IFA in fact. That would be worth checking as well as their specialisations. I'd also establish what brief the adviser is working to, time constraints and possible limitations of action. If particularly concerned, I'd ask them to explain the reasons for asking the various questions that gave me the most concern.