Consumers who receive financial guidance will be protected by the Financial Ombudsman Service (FOS) and the Financial Services Compensation Scheme (FSCS), according to the Financial Conduct Authority's (FCA) latest proposals.
In a new consultation on the Financial Advice Market Review out on Tuesday, the regulator proposed guidance should fall under the Principles of Business, the client's best interest rule, and the fair, clear and not misleading rule. This follows the Treasury's change of the definition of advice for regulated firms, which is set to come into effect on 3 January 2018. Under the new definition, which is based on the Markets in Financial Instruments Directive II (MiFID II), financial advice will need to involve a personal recommendation. Information given without a personal recommenda...
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