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CP26/10 consultation response

Pillar Client Services Ltd. Filed 12 May 2026, ten days early.

The part of your book CP26/10 is really about.

Our response addresses CP26/10 from the position of an outsourced client review operator working inside live IFA firms with sub-threshold books. The submission is grounded in operational data from the live deployment at the launch client: 200 client reviews, a 5% escalation rate, a 90% quality-audit pass rate, and £55,000 of new revenue generated.

The response makes three core arguments. First, the proposed periodic review cadence is the right direction of travel, but the framing should make explicit that frequency must be justified per client segment rather than reduced by default. Second, the evidence burden binds firms whether they review or not, because the obligation to demonstrate ongoing service continues for as long as ongoing fees are charged. Third, the cost-benefit analysis in the consultation paper understates the case for outsourced review delivery and overstates the cost of structured periodic review at firms with substantial long-tail books.

The submission also addresses the FCA's 16 April 2026 statement on distribution chain responsibilities. We argue these observations are the second binding constraint inside CP26/10, not a separate workstream. Manufacturers, platforms and advisers cannot evidence Consumer Duty outcomes for sub-threshold cohorts without a structured periodic review programme that captures outcomes data at the client level.

Download the full response

PDF, approximately 130 KB. Includes cover statement, seven question responses, and two exhibits.

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Questions addressed

  • Q7 -- Periodic review framework
  • Q8 -- Frequency cadence and segment justification
  • Q9 -- Evidence standards for sub-threshold clients
  • Q10 -- Ongoing service and ongoing charges
  • Q15 -- Cost-benefit analysis on review delivery
  • Q16 -- Outsourced review providers
  • Q22 -- Distribution chain and Consumer Duty

Exhibits

  • Exhibit A -- Consumer Duty mapping. How structured periodic review evidence maps to each of the four Consumer Duty outcomes.
  • Exhibit B -- Programme operational data. Live operating data from the launch client: 200 client reviews, a 5% escalation rate, a 90% quality-audit pass rate, and £55,000 of new revenue generated.

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