Chris Davies: Improving Advice Suitability

'Differentiate fact finds'

clock • 3 min read

There is no doubt the FCA are getting to grips with the advice suitability conundrum, writes Chris Davies - and they will be revisiting their 2017 advice suitability review where the regulator published findings from its Assessing Suitability Review.

The assessing suitability review showed that 93% of advice complied with the rules on suitability (split 7% networks and 93% directly authorised) but this figure was weighted towards simpler areas of advice. When the FCA looked at more complex issues - non-workplace pensions, for instance, and both pension- and non-pension-related investment products - the figures were not so positive. For example, only around half (50%) of the advice given on defined benefits pension transfers was deemed suitable. Here, the potential for consumer harm is high. There was also the issue of cost and cha...

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

FSCS declares three financial advisory firms in default

FSCS declares three financial advisory firms in default

Latest batch of failed firms revealed by lifeboat fund

Jenna Brown
clock 25 March 2024 • 1 min read
FCA commits to fast authorisations to boost finance sector

FCA commits to fast authorisations to boost finance sector

The regulator’s latest business plan highlights this focus

Sahar Nazir
clock 19 March 2024 • 1 min read
FCA to invest £1.9m in supporting clients with investment decisions

FCA to invest £1.9m in supporting clients with investment decisions

The regulator’s 2024/25 business plan outlines new initiative for investment

Sahar Nazir
clock 19 March 2024 • 1 min read