There is a specific rule requirement to disclose any possible disadvantages in the suitability report. The rule (COBS 9.4.7) can be seen here: http://fshandbook.info/FS/html/FCA/COBS/9/4.
Remember that a disadvantage is different to a risk. For example, there is a risk that investments can fall in value, whereas a disadvantage would be that the recommended product has higher charges than the product being replaced.
Important Note: ATEB news is intended to provide general information ONLY. The content, including any views expressed or guidance provided, does not replace the need to comply fully with FCA Rules and Guidance. Unless you have discussed news article content with ATEB, and specifically how it relates to your circumstances, then ATEB disclaims all liability and responsibility and actions arising from any reliance placed upon it. For the avoidance of doubt therefore, any reliance you place on such information without our consultation is at your own risk.
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Thomas Fuller, the 17th Century author and historian said that: “Health is not valued till sickness comes.” It is probably true that most people in good health perhaps take it for granted, but according to the Office of National Statistics, the number of working age people who can’t work because of long-term sickness […]
The FCA’s Retirement Income Advice thematic review seems to be gathering momentum and the latest developments come as no surprise. We’ve commented upon the survey in recent articles and are aware that some of the 1,300 or so firms that were sent it have now been asked to submit files by the regulator, who […]
Here’s a question. What happens to ongoing adviser charges if the adviser dies? This came up recently when we were asked: “We have it written into our adviser contracts that the clients belong to the adviser. We are considering an amendment to the contract along the lines of, if the adviser dies his […]
We drew attention to the FCA’s Retirement Income Advice Survey in our ‘What lies beneath?’ article last month and there has been plenty of commentary in the industry press about the survey since, most of it covering how generally intrusive and onerous completion is, but are there some benefits to be had here? It’s hard […]
The replacement business blind spot?
Paul Jay Compliance Drawdown, FCA, Pension, PI, platform, Switch, transfer
We’ve been involved with a number of firms who are on the acquisition trail and as part of the due diligence work we support them with, we check a lot of advice files. It won’t come as a surprise that many of these involve replacement business. What never ceases to amaze us is that, despite […]