In part one of his four part series, Karl Dines, Head of Business Consultancy and SimplyBiz, explores how the Matryoshka Principle can be translated in the advice process to create a robust business model.
The FCA’s Finalised Guidance and Thematic Reviews concentrate on ensuring controls and processes are in place to promote good client outcomes
Matryoshka Principle facilitates documentation in logical format
The Principle can be applied across a range of propositions
You may have heard of Matryoshka in its more common name, Russian Dolls. These are hollow wooden toys, usually painted in traditional Russian dress, although some have more contemporary designs. The idea is that each doll is smaller than the last, so they nestle inside each other, and when they are all fitted together you see only one doll, the biggest doll.
The principle was originally used in the computing industry, where systems and processes can be built inside one another, but it can be adapted to modelling a financial advice business too. The Finalised Guidance and Thematic Reviews from the regulator are littered with references referring to ensuring controls and processes are in place that will promote good client outcomes.
The Matryoshka Principle will allow the documentation of a large portion of business practices in a logical format. I cannot think of a better way of following regulator guidance than by constructing a high level framework based on what the FCA sees as good practice.
In a further three articles I will be taking this further and delving in to what a framework or set of wooden dolls would look like, and how you could practically apply this principle to design a robust client, investment and supplier proposition.
Karl Dines is Head of Business Consultancy at SimplyBiz Group