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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The FCA is consulting on ‘A New Consumer Duty’ and this is receiving considerable press coverage. The consensus of opinion is that this will bring significant change, and there is no doubt that larger firms in particular, will need to review and update systems. With regards to smaller firms however, our view is that much […]
The FCA has published the latest data on its work to tackle harm in the consumer investments market between April to September 2021. The data provides useful insights into specific areas of the FCA’s Consumer Investments Strategy, particularly higher-risk investments and scams. They have also issued a press release on the data, which you can […]
You read it here first – probably! The FCA has finalised new rules around disclosure in relation to sustainability. But before our adviser firm readers start to worry about rules they had not noticed on the horizon, we can confirm that the new rules do not affect adviser firms – yet. Regular readers […]
The FCA set out in its Business Plan 21/22 how it is changing to improve performance and meet future challenges. Read our previous article setting out a few of the key areas. Firms can learn from the progress to date on one of the key areas … The Early Oversight Function (EOF): stronger oversight […]
Ongoing client reviews – appropriate or not?
Alistair MacDougall Compliance FCA, Pension, PI, platform, Switch
FT Adviser published an article on 15 February under the headline “Advisers struggle to get savers to come for pension reviews”. We read this with interest and not a little concern. The article reported that one of the speakers at a recent conference stated that one of the greatest challenges faced by her advice […]