Advisers on 'dangerous ground' if they take tick-box regulation approach

‘They should embrace the spirit in which the regulation has been created’

Isabel Baxter
clock • 1 min read

Advisers could be on ‘dangerous ground’ if they apply a tick-box approach instead of embracing the spirit in which regulation has been created, according to Oxford Risk.

Its recently launched guide, More Than Mere Measurement: Guide to Client Investment Suitability, emphasises that individual measures of risk tolerance, risk capacity, behavioural capacity, knowledge and experience, and sustainability preferences need to be combined into a holistic suitable risk level. Adviser firms need to adapt to changes in the regulatory approach to client investment suitability assessments and move away from a product-specific focus, the guide stated. Oxford Risk noted that the Financial Conduct Authority's Consumer Duty rules in the UK and the European Union's Mi...

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