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.
Want to know more about upcoming changes to the Register and the introduction of the public facing Directory?
Firms that wish to operate in the EU/EEA after BREXIT need to take action.
A recent Court case appears to have created two tiers of client protection.
LPA may constrain the use of a DFM solution.
Mortgage Responsible Lending Update
Alistair MacDougall Compliance 2019, FCA, Mortgage, Switch, Update
The FCA has published the first summary of the discussions from the responsible lending implementation group.