Firms offering streamlined advice must be careful to obtain and understand "all the essential facts" to make sure they provide a suitable recommendation to clients, the Financial Conduct Authority (FCA) has warned.
Despite offering a narrower scope, streamlined advice services will not allow firms to lower the level of protection due to clients, the FCA warned in its guidance consultation on the matter out on 11 April. However, the FCA said firms giving the service may not have to perform an analysis of all a client's circumstances. They will be expected to have a "reasonable basis" for believing a recommendation meets a client's investment objectives, is suitable for the client, and that the client has the necessary experience and knowledge to understand the risks involved. Nevertheless, as...
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