This week we completed and submitted a mandatory survey to the FCA about the impact of Covid on our business. It was mainly aimed at the financial side of the business and how this has changed due to the pandemic we are living through.
Co-founder Neil Wattam and myself booked some time to go through the survey which looked at the cash position of the business and cash flow changes throughout the past three months and also looking ahead. As WKM received FCA authorisation during the current situation we have been very fortunate that technology has allowed us to operate and given us efficiencies beyond our expectations at outset. In addition, it has really made us keep an eye on the cost base of the business.
The survey got me thinking about the words of a firm whom a client had decided to leave to join WKM a couple of months ago. They tried to claim that moving to us was high risk as many businesses fail within the first 12 months. This week an article in Citywire claimed that 800 advice firms have told the FCA they face a liquidity crunch.
We are very open and honest with clients about our internal financial position and despite the pandemic it is really pleasing to see that our capital base is higher now than when we received authorisation. The Citywire article suggests that those businesses who perhaps don’t have such a tight grip on costs are the ones who will feel the pinch most. I wonder if the individual who tried to ‘spook’ the client has considered this fact knowing their business has a high cost base.
Caring for our fellow human has been one of the real positives to come out of the past 6 months and I wholeheartedly hope the firms who are facing a difficult time are able to trade their way through the cash pinch. Hopefully the FCA will also provide them with some support during this time and we don’t see a further widening of the advice gap that is already evident in the UK.
After completing our first FCA survey it is a nice feeling to know that our submission brought no concerns on the direction of travel of the business and that sustainability has been achieved and now is the time to push on.
If our open, honest, and personal approach rings true with you, why not book a no-obligation chat with us and we can explore the possibility of working together.
Thanks for reading and