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.
ATEB Compliance offers compliance and regulatory advice.
ATEB Suitability provides report writing software for the financial services market.
FCA disappointed. 73% of 113 firms failed to provide the required generic information on how they charge for advice.
The second stage of the FCA’s thematic reviews regarding firms’ delivery of the RDR has been published and focusses on independence. If you are interested in knowing more about what independence means then read on.
Do you include ‘Benefit Statements’ in your reports?
Is this what your suitability report could be growing?
Consumer Credit – When to Apply for Full Authorisation
Steve Bailey Compliance 2014, 2016, FCA
The FCA has issued guidelines to firms about when and how they should apply for full consumer credit authorisation. All firms who hold interim permissions or are new to consumer credit should read on.