Advice from retail investment advisers on shares, derivatives and other investment products that are not classed as retail should be included in the regular complaints reports the Financial Conduct Authority (FCA) receives from firms, the FCA has said.
In a consultation paper the FCA proposed to widen its complaints reporting proceedure to non-retail products when they have been sold by a retail investment adviser.
It would then receive information from securities, derivatives, retail investment products and Friendly Society tax-exempt policies.
Its exact wording will be to receive information on "complaints about matters relating to activities carried out by any one employee when acting as a retail investment adviser".
The FCA said in its paper: "Adjusting the rules to refer to activities carried out when acting as a retail investment adviser will align the scope of all the RDR professionalism rules to the same individuals and the activities they carry out.
"This will ensure that advisers are subject to the same standards and scrutiny - for example, if they advise on collective investment schemes or on shares or derivatives.
"We are concerned that if we do not make the proposed adjustment, poor quality advisers that specialise in shares or derivatives (for example) could fall under our radar and the clients of these advisers could suffer."
The regulator's complaints reporting rules were introduced at the end of last year. They include a six-monthly complaints report from firms and an ongoing notification when an adviser has received three upheld complaints within 12 months or one complaint paying more than £50,000 redress.
The FCA said the costs arising from changing its definition should be minor to both the regulator and firms which have to comply.
Changes to the rules would come into force at the beginning of next year.
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