Independent research into the benefits of the suitability letter has found they are an important tool for providing clarity and transparency for customers, according to the FSA.
The research, conducted by Oxera, was commissioned by the FSA in response to a 2006 report from Deloitte, which found that the regulation imposed a relatively high cost on the industry. Dan Waters, director of retail policy at the FSA, comments: “Feeding into our evidenced-based approach to policy making, this report offers helpful indicators of the benefits of the suitability letter and supports our overall judgment that the requirement is proportionate.” However, following the research, the FSA has decided to simplify the suitability letter to a ‘suitability report’ to allow firms gre...
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