We ran a structured pilot inside a live IFA firm with 578 active clients. The first batch covered 10 clients selected from the long-tail segment: clients paying ongoing fees who had not received a review in 12 months or more.
Every review followed the same framework. Structured call with the client. Documented file note in Intelliflo. Consumer Duty evidence recorded. Vulnerability screening completed. Outcomes logged.
What we found
Of the 10 reviews, 8 required no adviser involvement. The client's circumstances had not changed materially, their risk profile was still appropriate, and their portfolio was still aligned. We documented the review, recorded the outcome, and moved on.
Two reviews surfaced something that needed adviser attention. One client had a change in employment that affected their income protection needs. Another had received an inheritance and wanted to discuss additional investment. Both were escalated with full context and a briefing note.
The numbers
The 20% escalation rate was higher than our steady-state target of 10%, which is expected in a first batch where clients have not been contacted for over a year. As the review cycle matures and clients are contacted annually, escalation rates drop.
The two escalated cases generated revenue for the firm in month one. The inheritance case resulted in new investment business. The income protection case led to a policy review and new cover. Total revenue from escalations in the first month: £11,000.
Against the cost of conducting the reviews, the firm saw a 2.4x return within 8 weeks. That is before factoring in retained ongoing fees from clients who would otherwise have been unreviewed and at risk of regulatory challenge.
What this means for firms
The pilot proved three things. First, the majority of long-tail reviews do not need an adviser in the room. Second, structured outsourced reviews generate the Consumer Duty evidence the FCA expects. Third, the escalation model turns a cost centre into a revenue channel.
If your firm has 200 or more clients below the commercial review threshold, the maths works. The cost of reviews is less than the revenue at risk from not conducting them.