What Happens When a Client Requests Their Files? A Compliance and Risk Guide for IFAs
- Maryna Farrell
- 3 days ago
- 3 min read
When a client asks for a complete copy of their file — perhaps from several years ago — how quickly and confidently can you respond?
For many Independent Financial Advisers (IFAs), the answer isn’t straightforward. Files may be scattered across office filing cabinets, digital platforms, archived inboxes, or stored in bulk offsite with little indexing. And when the FCA or a client requests documentation, the clock starts ticking.
In this article, we explore what IFAs are required to retain, the risks of not being prepared, and how firms can improve their document strategy to stay protected — and professional.
1. The Scenario: A Client Wants Their File. Are You Ready?
It could be a long-standing client moving to another firm.It could be a complaint.It could be a routine FCA audit.
Regardless of the reason, when someone asks for their full client record — including suitability reports, meeting notes, ID documentation, risk assessments, and communications — you need to know:
Where it is
That it’s complete
That it’s safe and compliant to share
If files are stored in multiple formats and locations, retrieval becomes a slow and uncertain process — risking both your reputation and your regulatory standing.
2. What Are IFAs Required to Keep?
The Financial Conduct Authority (FCA) requires IFAs to retain client records that demonstrate:
Advice given
Rationale behind that advice
Client risk profile and investment objectives
Evidence of fact-finding and suitability reports
In general, records should be kept for at least five years, but many firms keep them longer due to ongoing client relationships or legal requirements.
At the same time, under GDPR, clients have the right to request their data, and firms must provide it without “undue delay”. The pressure to access files quickly — and securely — is growing.
3. The Risks of Being Unprepared
Failing to locate a complete file doesn’t just inconvenience your team — it can lead to:
Regulatory breaches – If the FCA audits your business and finds missing or disorganised files
Client complaints escalation – If you can’t demonstrate the advice given
Data security issues – If paper files are misplaced or accessed by the wrong person
Loss of trust – If a client feels you’ve failed to protect or respect their information
In a profession built on trust and compliance, your document management strategy matters.
4. The Smarter Way to Handle Client Records
To avoid these risks, IFAs need a document process that is:
Searchable
Secure
Compliant
Efficient
That’s where MDSS comes in. We work with financial advisers to help them build confidence in their record-keeping, with services that include:
Turn paper-based client files into fully searchable digital records — with OCR, indexing and tagging. This means faster retrieval and easier sharing when requested.
Scan-On-Demand
Still storing physical documents? No problem. With scan-on-demand, we retrieve and scan files as you need them — same day in most cases — so you don’t have to store everything digitally upfront.
Free up space while keeping archived records compliant and protected. Every box is indexed and tracked for quick retrieval.
We help you stay aligned with retention schedules by securely destroying expired records — with full GDPR-compliant audit trails and certificates of destruction.
5. Practical Steps You Can Take Now
Audit your current filing system – What’s digital? What’s not?
Review retention policies – Are you keeping files too long, or not long enough?
Set up a digitisation plan – Whether scanning all files or starting with high-risk clients
Train your team – So they understand what’s expected if a file request comes in
Work with a trusted provider – Like MDSS, with decades of experience in regulated environments
Conclusion: A Small Change, A Big Advantage
Being prepared when a client or regulator requests a file is more than a compliance issue — it’s a professional standard. By investing in better document access, security and retention, IFAs can protect their businesses, reassure their clients, and focus on delivering great advice.
If your firm needs help reviewing, digitising, or securely managing client records, the team at MDSS is here to support you.
Contact us today for a confidential consultation.
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