The Financial Conduct Authority (FCA) will begin a new round of suitability assessments next month motivated by concerns that the Financial Advice Market Review (FAMR) will affect the way advice is conducted.
The regulator has sent a letter to 700 firms requesting that they submit files for assessment. Specific areas favoured by the FAMR report that might affect the suitability of advice include the focus on technology and robo-advice and changes to definitions, according to the regulator. The 700 firms have been selected at random, although the sample aims to reflect the shape of the market. Some 500 of the firms will be small, and required to show one file to the regulator, the remaining 200 will be asked to show several files, with the exact number dependent on the size of the firm....
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- 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
