Investment advisers still need to make "substantial" improvements in demonstrating the suitability of their advice, despite a series of warnings, the regulator has found.
In the findings of its thematic review into the suitability of investment advice, the Financial Conduct Authority (FCA) said "a number" of firms have taken steps to improve and demonstrate that their clients' portfolios are suitable. But many firms still have to make substantial improvements in gathering, recording and regularly updating customer information to support the investment portfolios they manage for customers, it said. Firms also need to do more to ensure that the composition of the portfolios they manage truly reflects the investment needs and risk appetite of their custom...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes