Three areas where advisers can avoid suitability pitfalls - Rory Percival

Based on findings in FCA suitability review

Victoria McKeever
clock • 3 min read

Confusing elements of risk profiling and capacity for loss, as well as overlooking client knowledge and experience, are three areas where advisers can avoid common suitability pitfalls, says Rory Percival.

Speaking at PortfolioMetrix's ‘The Mix Forum', the former Financial Conduct Authority (FCA) technical specialist-turned consultant said advisers were still making mistakes in those areas and the regulator was keeping an eye on them. Percival (pictured) based his guidance on his experience working on the FCA's suitability review last year, which had examined 1,165 client files from about 700 firms. Here is what tends to go wrong and how advisers can fix it, according to Percival: 1 Risk profiling   Percival warned of contradictory answers sometimes being given by the risk profilin...

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