FCA tweaks guidance on what constitutes 'advice'

clock

The Financial Conduct Authority (FCA) has set out its final definitions of regulated advice and personal recommendations in retail investment, in a move it hopes will help firms develop 'low cost' distribution models with confidence.

The regulator consulted on the terms last year following confusion among advisory firms and other stakeholders in relation to ‘simplified' advice, decision trees, model portfolios and how the Financial Ombudsman Service (FOS) would treat complaints. Clarity was necessary, it said, because it felt uncertainty may be preventing firms from developing products or services, particularly low cost online advice or execution-only investment models. Its final paper is largely identical to the suggested guidance on which it consulted.   Clarity? One persistent area of confusion centred ...

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

Court sets trial date in illegal financial promotions case

Court sets trial date in illegal financial promotions case

Lucy Beck pleads not guilty

Sophia Panayi
clock 31 July 2026 • 1 min read
FCA flags weak customer outcome focus in firms' monitoring frameworks

FCA flags weak customer outcome focus in firms' monitoring frameworks

Consumer Duty review found inconsistent governance and oversight

Sophia Panayi
clock 27 July 2026 • 2 min read
Open finance could pose 'existential threat' to advice market

Open finance could pose 'existential threat' to advice market

Consumer Duty Alliance tech forum attendees hear

Sophia Panayi
clock 23 July 2026 • 3 min read