A Fact Find is a document recording information about a client, his/her finances and present and future needs that investment firms must acquire before providing anyone with advice or managing their portfolios. It is also called a ‘Client Profile’.

A fact find is a set of questions asked by a financial professional to learn about a client’s financial needs. It helps the professional understand what the client wants, so personalised solutions can be provided.

The Fact Find was introduced as part of "Know Your Customer" regulations by the FCA in Britain in 2006. Also known as Fact-finding, it was introduced as a mandatory stage in the advice process for any Advisor looking to provide recommendations on investment planning, retirement planning, and for some insurance planning.

Understanding Client Needs:   The fact find process helps financial professionals gain a comprehensive understanding of their clients' financial situation, goals, and aspirations. This information is crucial for providing personalised advice and tailored solutions.

Bespoke Recommendations:   By collecting detailed information through a fact find, professionals can create customised financial plans that align with the specific needs and circumstances of their clients. This leads to more effective and relevant recommendations.

Risk Assessment:   Through a fact find, professionals can assess their clients' risk tolerance and investment preferences. This knowledge allows them to suggest suitable investment options that balance potential returns with the client's comfort level.

Identifying Gaps and Opportunities:   The fact find helps uncover any gaps or areas of improvement in a client's financial situation. It enables professionals to identify opportunities for maximising savings, optimising investments, or addressing any potential risks or vulnerabilities.

The fact find process is just simply for the Advisor to ask the clients questions and gather information about their finances, goals, and needs. They cover things like income, expenses, assets, debts, investment preferences, risk tolerance, and future plans. This information helps professionals give personalised advice and create custom solutions that match the client's unique situation.

What is a Fact Find in Financial Planning?

Financial planning refers to the services offered around investments, retirement, protection, and later-life needs. A Fact Find in financial planning will involve asking questions related to the needs of the clients with a view to making recommendations on these areas.