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.
Transfers and death benefits: considering life cover as more than lip service.
Is it risky to recommend a client invests via an adviser only platform?
New rules around ESG investing are expected in 2021. Firms should start preparations sooner than later.
The FCA has published finalised guidance on its framework to help financial services firms ensure they have adequate financial resources and take effective steps to minimise harm to consumers and to markets.
Data protection for joint parties
Alistair MacDougall Compliance 2018, Data Protection Act, GDPR, ML
Take care not to be caught out if the client provides details of another person.