“Vast majority” of ongoing suitability reviews being delivered, FCA finds

Published on

The Financial Conduct Authority (FCA) has reported that advisers are delivering suitability reviews in the vast majority of cases included in its review of ongoing advice.

Financial advisers can charge their clients for ongoing advice and related services; the regulator was concerned that these services may not always have been delivered where they had been offered, so asked for data from 22 of the largest financial advice firms. The review focused on delivery of suitability reviews as firms generally included these as part of their ongoing advice service.

The data provided by the firms showed that suitability reviews were delivered in around 83% of cases. In a further 15% of cases the FCA were told that clients either declined or did not respond to the firm’s offer of a review. There were fewer than 2% of cases where firms reported they had made no effort to deliver the suitability review to clients.

The FCA is asking all advice firms to review its findings, and to consider whether they have met their regulatory requirements and contractual obligations regarding ongoing services. If not, they should take appropriate steps to remedy the situation.

Simon Walls, interim executive director of markets at the FCA, said: “Ongoing financial advice and support can be a fantastic service and can be important in helping people make the most of their money. Relationships between advisers and customers can last many years and can take different forms.

“In the vast majority of the cases we looked at, firms delivered ongoing advice for their customers. But, in a small number of cases, they haven’t attempted to provide the services they offered and customers are paying for. In those instances, they will need to put that right.

“The FCA will also review the rules on ongoing advice to make sure they remain fit for the future and help as many people as possible to get good support in managing their financial lives.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Long-term vacant homes in England rise 14.5%

The number of long-term vacant homes in England has risen by 14.5%, despite continued...

Tenant support for Renters’ Rights Act grows

Awareness and support for the Renters’ Rights Act has risen sharply among tenants since...

Mortgage and protection professionals urged to complete industry ED&I survey before deadline

Industry leaders are calling on mortgage and protection professionals across the UK to complete...

Paragon cuts further advance rates and lowers minimum loan to £2,000

Paragon Bank has reduced rates and simplified the application process for buy-to-let further advances,...

The Cambridge adds 80% LTV limited company holiday let deal

The Cambridge Building Society has launched a limited company buy-to-let holiday let mortgage at...

Latest publication

Other news

Equity Release Council to launch later life lending leadership symposium

The Equity Release Council is to launch a new leadership format for its annual...

Q&A: David Jones, Click2Check

Mortgage Soup fires the questions at David Jones, director at digital compliance and onboarding...

Long-term vacant homes in England rise 14.5%

The number of long-term vacant homes in England has risen by 14.5%, despite continued...