We do not think that the removal of the templates is much of a loss. While they provide an ‘off the shelf’ way to comply with the disclosure rules, they have never, in our view, been very client friendly or effective.

Many of our clients already use disclosure documents that do not follow the template format and are probably more effective and targetted as a result. Those firms that have yet to create bespoke disclosure literature should do so, not only because the templates are being withdrawn but, more importantly, because literature created specifically for the firm is likely to be more client friendly and effective in ensuring that clients fully understand the firms’ service offering.

We recommend a format along the following lines.

• Who we are / what we do
  One document outlining the firm and its services and highlighting the benefits not the features – for example instead of simply declaring the firm’s independent status, make something of it. What does that mean for the client? Spell it out but remember that every document must be clear, fair and not misleading.
  
  
• What it costs
  This is the fee agreement. One document describing the firm’s initial services in detail (with some passing reference to ongoing service) and the costs of each element of the service (bearing in mind the FCA’s requirements in this respect) and with space for a client signature authorising the service(s) to be provided and the cost of the service(s).
  
  
• Important information
  One document (that need be no more than two sides of A4) disclosing the ‘compliance’ stuff – name and address of the firm, regulatory statement etc. , that is, much of the content of what firms currently call a Terms of Business or a Client Agreement but only comprising the compliance stuff that is left after stripping out the key information about who/what and how much!
  
  
• Ongoing services
  This is one document that the client signs to confirm the level of ongoing service that they want and to confirm authorisation for that ongoing service. The service should be detailed  in terms of what is provided, how and how often and should be mindful of the steps required to achieve VAT exempt intermediation. The service description should not include things that firms have to do, for example, retain records. And care should be taken to avoid including things that cannot be guaranteed, for example, “calls will be dealt with within x hours”, or cannot be withheld, for example, “access to an adviser”.