Simplified advice propositions should include hurdle questions to prevent certain types of client from entering the system, according to a lawyer turned adviser.
Fiona Karlin, a former financial services lawyer and now director at advice firm Momentum Partners, said firms needed to guard against making risky one-off mistakes and should put in place hurdles to ensure client suitability in online advice. She said the Financial Conduct Authority's (FCA) latest guidelines published in January made it clear the regulator expected firms to treat simplified and focused advice propositions in the same way as full advice, including risk profiling. The challenge for firms was to design solutions that are compliant and at the same time straightforward en...
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