Six surprising snippets from the FCA's simplified advice paper

Six surprising snippets from the FCA's latest consultation paper

Scott Sinclair
clock • 5 min read

The Financial Conduct Authority (FCA) has attempted to clear up some of the confusion surrounding the boundaries between various advice models, and clarify what constitutes a 'personal recommendation'.

In a guidance consultation paper issued on 11 July, the regulator said it wanted to explore the barriers preventing firms from developing distribution models, both advised and non-advised, which were separate from the existing extremes: full advice and execution-only. It says there exist five main types of retail investment distribution model. Some stakeholders have suggested the guidance - which remains a consultation until 10 October - has failed to deliver the clarity it set out to achieve. But the FCA argues it has shown there are no barriers to firms developing new models to c...

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

'Danger' for advisers who think poor conduct is not relevant to them

'Danger' for advisers who think poor conduct is not relevant to them

‘You cannot rely on people deciding what to do in the moment’

Hope Coumbe
clock 28 March 2024 • 1 min read
Advisers on 'dangerous ground' if they take tick-box regulation approach

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 27 March 2024 • 1 min read
FCA enforcement to become 'assertive, proactive and intrusive'

FCA enforcement to become 'assertive, proactive and intrusive'

‘You can expect the regulator to take robust action where needed’

Isabel Baxter
clock 29 February 2024 • 2 min read