THE FSA has further outlined its proposals for a "simplified and less prescriptive" principles-based suitability report, giving advisers greater discretion over how they meet TCF requirements.
The details are included in a policy statement confirming that the regulator will retain a number of specific consumer protection measures when its new rulebook for investment businesses, Conduct of Business Sourcebook (COBS), is introduced on November 1. This follows the original Reforming Conduct of Business Regulation document, which was published in 2006. The FSA said that the suitability report must set out a client’s demands and needs; an explanation of why the firm has concluded that the recommended transaction is suitable for the client; and an explanation of any possible disadva...
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