The Financial Conduct Authority (FCA) has confirmed it will require advisers to report any high risk investments sold to clients in their regulatory returns.
The regulator first put forward the suggestion in a consultation in December 2016, as part of the ongoing Financial Services Compensation Scheme (FSCS) funding review. It said it was considering whether advisory firms should pay a premium on FSCS levies if they distributed products it considered to be ‘higher risk', in the form of a risk-based levy. The regulator said the levy could include products that have been linked to past FSCS claims. These investments included non-mainstream pooled investments, non-readily realisable securities, contigent convertible (CoCo) instruments, C...
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
