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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Here are some key messages from the initial tranche of Consumer Credit applications
Must view FCA Webcast outlines clear requirements
The rules cover fee charging and come into force on 2 January 2015.
The FCA has issued part 3 of its three-cycle RDR Thematic Review
Clarifying Sales Models’ Boundaries
Steve Bailey Compliance FCA
FG15_1 clarifies the different types of sales models, the boundaries between them and the associated regulatory requirements.