The FCA is about to embark upon a Thematic Review around suitability. We understand that 700 firms have been chosen at random to take part in the review.
The regulator is currently emailing those firms to give advance notice of information that will be requested.
The review will focus on advice provided in respect of investment, pension accumulation and retirement income with a view to –
- identifying the ways in which firms provide good advice to consumers;
- identifying areas where firms in general may not meet regulatory requirements in providing suitable advice to consumers.
We believe that the milestones for the review are –
- Initial contact with firm – now;
- Email specifying information required – 18 April;
- Deadline for information – 3 May;
- Request for client file(s) – May/June (for most firms only one file will be requested).
FCS Transitional Arrangements
Steve Bailey Compliance Update
As you will be aware the Financial Services Authority ceased to be and the Financial Conduct Authority took over the regulation of financial advice firms on 01 April 2013.
The FSA issued PS13/05 last week which includes updated rules and transition arrangements. The policy statement itself is 88 pages but the ‘appendix (3)’ that accompanies it is a mere 1990 pages so you must excuse us for not as yet absorbing every word. The document can be seen here.