FCA: Some advisers failing clients on charging disclosure

Carmen Reichman
clock

Some advisers are not transparent enough about their charges, leaving customers confused and unable to compare and contrast prices, the Financial Conduct Authority (FCA) has alleged.

In the first part of its thematic review into how firms are implementing changes brought about by the Retail Distribution Review (RDR), the regulator found that there was a lack of understanding among retail investment clients about the cost of advice. The FCA said: "We were pleased to find that many firms had tried to create documents clearly outlining the charges a client would pay. But we also found that some firms are not yet meeting our rules. "Improvement was most needed in the disclosure of adviser charges." Advisers were not, for example, outlining the cost of their service...

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

Trade bodies call for chancellor to stop FCA public enforcement

Trade bodies call for chancellor to stop FCA public enforcement

‘Proposals to publicise investigations are a worrying development’

Isabel Baxter
clock 29 April 2024 • 2 min read
SDR extension plans will ensure 'uniform standard' for portfolios

SDR extension plans will ensure 'uniform standard' for portfolios

'Retail-focused firms are also facing a short timeline to prepare'

Cristian Angeloni
clock 24 April 2024 • 4 min read
FCA proposes advisers and platforms 'must' communicate SDR labels

FCA proposes advisers and platforms 'must' communicate SDR labels

Distributors also must provide access to consumer-facing disclosures

Isabel Baxter
clock 23 April 2024 • 1 min read