Advisers must ask clients 'positive' and 'negative' questions to appease the FCA - Zurich

Laura Miller
clock •

Advisers have to probe clients with both ‘positive' and ‘negative' questions to meet the regulator's expectations about assessing attitude to risk, according to Zurich strategic partner specialist Andy Woollon.

Positive questions such as asking what the client wants to do in retirement must be balanced with more negative questions about what the client would do if the value of their investment fell or if they had to invest more, he said. The Financial Conduct Authority (FCA) will be looking at advisers' centralised investment propositions, due diligence and assessment of suitability in this year's thematic reviews, Woollon said. A key plank of this work will be ensuring advisers can prove they have comprehensively assessed clients' attitude to risk - and the consequences of those risks happe...

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 secures money back for victims of £1.5m crypto fraud

FCA secures money back for victims of £1.5m crypto fraud

Obtains confiscation orders against Raymondip Bedi and Patrick Mavanga

Sophia Panayi
clock 28 September 2026 • 1 min read
FOS partially upholds complaint against SJP for failing to provide annual reviews

FOS partially upholds complaint against SJP for failing to provide annual reviews

SJP failed to provide five annual reviews for client

Sophia Panayi
clock 23 September 2026 • 3 min read
FCA: Simplified advice rules update imminent; MPS review outcome set for 2027

FCA: Simplified advice rules update imminent; MPS review outcome set for 2027

Regulator's Kate Tuckley gives update

Isabel Baxter
clock 08 September 2026 • 3 min read