With replacement business under the regulatory microscope, Rebecca Prestage, head of policy at The Consulting Consortium, offers a ten-point checklist for advisers.
In light of a recent speech from Rory Percival, technical specialist at the Financial Conduct Authority (FCA), it is clear the regulator is still concerned about the reasons being given by advisers as justification for replacement business. Following the removal of product incentives, in Rory Percival’s words, “there should not be a need for [inappropriate] replacement business anymore”. Replacement business refers to situations when the adviser is recommending that the client surrenders or sells an existing investment and invests the proceeds in a new product. Following the Retail...
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