Advisers told to ramp up stress testing ahead of Consumer Duty

FE fundinfo chief investment officer Rob Gleeson told Professional Adviser that the Financial Conduct Authority's (FCA) new regulation emphasises stress testing and scenario analysis as essential components of the advice process. This includes analysing the liquidity of investments and considering sequencing risks, not just for retirement planning, but also for short-term emergencies. "By stress testing various scenarios, advisers can demonstrate that they have considered foreseeable harm and taken steps to mitigate risks," Gleeson said. "While specific guidance on implementation i...