Suitability letters: The reality behind the FCA's latest theory

Advisers respond to FCA call for 'short' suitability letters

Carmen Reichman
clock

The Financial Conduct Authority (FCA) wants suitability letters to be customer focused, not geared to protecting the firm's position, and short. But that is virtually impossible, say advisers

Damned if you do, damned if you don't, is the feeling many advisers have towards the FCA. There is certain information the regulator wants clients to be given as part of their suitability letters. That includes a breakdown of fund charges, details of funds and why they were chosen. Now technical specialist Rory Percival has told the industry there are only three things suitability letters must typically contain. These are the client's objectives, why the recommendation is suitable and what the disadvantages of the recommendation could be (unless it is a more complex area such as dr...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA continues data reporting cuts

FCA continues data reporting cuts

Regulator removes more data returns

Isabel Baxter
clock 28 August 2025 • 1 min read
Regulatory and employment-related changes – what do firms need to prepare for?

Regulatory and employment-related changes – what do firms need to prepare for?

‘Getting these issues right is not just about avoiding regulatory action or tribunal claims’

Sophie White
clock 21 August 2025 • 4 min read
FOS fees could fall if cases resolved early

FOS fees could fall if cases resolved early

Consultation seeking to modernise charges

Jenna Brown
clock 13 August 2025 • 2 min read