The FCA employs a principle based approach to regulation. Principle 7 states that “A firm must pay due regard to the information needs of its clients, and communicate information to them in a way which is clear, fair and not misleading.”
This is a fundamental cornerstone required of all client communication.
While some degree of technical information is inevitable, your suitability reports should nevertheless be easily understood. One effective way to test the clarity of your suitability reports is to ask a friend or family member, who has no financial services experience, and who is more likely to provide frank observations, to read and to provide critical feedback.
Changes coming to the Appointed Representatives Regime – and soon!
Paul Jay Compliance 2018, 2019, 2021, 2022, complaints, Conduct, FCA, FOS, FSCS, PI, protection, Update
FCA recently published Policy Statement (PS22/11) announcing some key changes to the Appointed Representatives (AR) regime, affecting both AR firms and their Principals.