FCA finds 73% of firms fail to show true cost of advice

Laura Miller
clock

Nearly three quarters of firms are still failing to show clients the true cost of advice, the regulator has found in what it calls a "wake-up call" for the industry which has already put two firms at risk of enforcement action.

Too many advisory firms are not being clear with consumers on how much advice costs, the type of service they offer - whether it is restricted and the nature of the restriction - and what on-going services they provide, the Financial Conduct Authority (FCA) said. It is likely two firms with "egregious failings" will be referred to the FCA's Enforcement and Financial Crime Division, the regulator said. This includes one financial advisory firm and one wealth management firm. The results are part of the regulator's second review into the implementation of the Retail Distribution Review ...

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 targeted support communication to 'ramp up' as further guidance issued

FCA targeted support communication to 'ramp up' as further guidance issued

Regulator expected to update the industry this month

Isabel Baxter
clock 09 June 2025 • 5 min read
FCA joins forces with international regulators on illegal finfluencer crackdown

FCA joins forces with international regulators on illegal finfluencer crackdown

Nine regulators from across the globe come together

Isabel Baxter
clock 06 June 2025 • 3 min read
Advisers do not expect FCA's targeted support to prompt new client propositions

Advisers do not expect FCA's targeted support to prompt new client propositions

Some 54% said they will not consider new propositions, Schroders finds

Isabel Baxter
clock 03 June 2025 • 2 min read