Simpler advice rules should not mean simpler client understanding

The direction of travel is clear

clock • 2 min read

The FCA's CP26/10 proposals represent a significant step towards more proportionate advice, write Elly Dowding and Lee Coates. But as firms embrace simplification, there is a risk that some aspects of knowing the client are treated as optional rather than essential…

The Financial Conduct Authority's CP26/10 consultation on simplifying pensions and investment advice rules has been widely welcomed and well discussed across the profession. The direction of travel is clear: reduce unnecessary complexity, support more proportionate advice processes and help firms provide different forms of support to a broader range of consumers. Those are positive objectives. For many years, advisers have operated within a framework that often encouraged firms to gather more information than was necessary, produce longer suitability reports than clients were likel...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Appointed representatives: Are you really in control of the risks?

Appointed representatives: Are you really in control of the risks?

'The FCA doesn't just want oversight, it wants evidence'

Paul Bruns
clock 06 October 2026 • 7 min read
Manchester City charges: Treasury Committee chair raises tax questions with HMRC

Manchester City charges: Treasury Committee chair raises tax questions with HMRC

As Tax Policy Associates points to potential £12m in unpaid tax

Jen Frost
clock 02 October 2026 • 2 min read
'Waiting for certainty can itself create the breach': When must a firm notify the FCA?

'Waiting for certainty can itself create the breach': When must a firm notify the FCA?

'A voicemail is unlikely to suffice'

Gareth Fatchett
clock 02 October 2026 • 5 min read