The Financial Conduct Authority (FCA) has attempted to clear up some of the confusion surrounding the boundaries between various advice models, and clarify what constitutes a 'personal recommendation'.
In a guidance consultation paper issued on 11 July, the regulator said it wanted to explore the barriers preventing firms from developing distribution models, both advised and non-advised, which were separate from the existing extremes: full advice and execution-only. It says there exist five main types of retail investment distribution model. Some stakeholders have suggested the guidance - which remains a consultation until 10 October - has failed to deliver the clarity it set out to achieve. But the FCA argues it has shown there are no barriers to firms developing new models to c...
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