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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This paper announced a number of significant changes to the rules around transfer advice.
We wrote in our last Newsletter about call recording and the FCA’s view on any issues that might arise during the COVID-19 emergency. You can link to our previous articles on call recording here. Now, as mentioned, Article 3 MiFID Exempt Firms have the option to create written file notes instead of recording calls and we […]
The FCA has published guidance for consumers wanting to check if the advice they received to transfer out of a defined benefit pension scheme might have been unsuitable.
The FCA is writing to around 13,000 firms with a short survey.
FCA framework for firms on assessing adequate financial resources
Alistair MacDougall Compliance FCA
The FCA has published final guidance on a framework to help financial services firms ensure they have adequate financial resources and to take effective steps to minimise harm.