The Financial Conduct Authority (FCA) is warning advisers about delegating their regulated activities, such as providing pension switching advice, to an unauthorised third party after it found firms had created entire business models around the practice.
In a notice published today, the FCA said it is essential advisers maintain ownership of the advisory process between themselves and their client. It warned delegating tasks to unauthorised firms "carries risk" and reminded advisers they would remain responsible for all decisions, actions and potential harm on advice carried out in association with their firm. The FCA said it has come across firms whose business model was to delegate the entire regulated activity of providing advice to an unregulated third party. In some cases retail consumers had been recommended to switch their m...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
