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 Financial Services Compensation Scheme (FSCS) is the UK’s statutory ‘fund of last resort’ for customers of authorised financial services firms. The FSCS provides compensation when certain authorised financial services firms are unable, or likely to be unable, to meet claims against them. The FSCS’s operating costs and compensation payments are funded by levies on […]
The FCA has launched a consultation (CP21/34 ) which is intended to improve the appointed representatives regime and tackling harm from this model. The consultation arises from what the FCA describes as ‘a wide range of harm across all sectors where firms have ARs. This harm often occurs because principals don’t perform enough due diligence before appointing an AR, or […]
The FCA has published a consultation paper on proposed policy changes to the way its fees will be calculated from 2022/23. The paper includes proposed increases to the fees financial services firms pay to cover the cost of regulation. In the April 2021 fee consultation, the FCA said it would undertake a review of […]
We have seen a very large number of pension transfer suitability reports since the introduction of the pension freedoms that came out of the Pensions Act 2015. Many of these displayed two common threads running through the recommendation. First, many of the clients apparently wanted ‘flexibility’. Second, those same clients wanted ‘control’. These two […]
Advising non-UK clients
Alistair MacDougall Compliance Conduct, EEA, email, EU, FCA, MiFID, passport, PI, vulnerable
Despite the fact that the UK ceased to be a member of the EU/EEA almost a year ago, we are still asked for advice around how a UK firm can take on a new non-UK client or continue to deal with such clients that the firm had pre-BREXIT. We have written before about the general […]