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...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
