Consolidators focusing on ongoing revenue streams could incentivise advisers to needlessly recommend products with an ongoing advice requirement, the Financial Conduct Authority (FCA) has warned.
In the FCA's latest sector views statement, published on Tuesday (18 February), the financial watchdog raised concerns about advisers being incentivised to recommend products with an ongoing advice requirement instead of more suitable options, particulartly in the event they are planning to sell their business in the near future. The FCA said: "We have concerns that advisers may be recommending products with an ongoing advice requirement, potentially instead of more suitable options that do not have ongoing fees. "This may be exacerbated by the consolidation of adviser firms, which h...
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
