Larger, restricted advisory firms are more consistent on suitability - FCA

Advice found to be 'suitable' in 93.1% of cases

The regulator has found larger, restricted firms and those tied to networks need to be more consistent in providing suitable advice than their smaller, independent and directly-authorised counterparts.

In its latest suitability review, the Financial Conduct Authority (FCA) said it was pleased to find advice given by regulated financial advisers was suitable in 93.1% of the cases but found slight variances depending on the types of firms. The regulator had assessed 1,142 individual pieces of advice given by 656 firms against its suitability and disclosure rules.  It found restricted advisers were more likely to give suitable advice than their independent counterparts, while appointed representatives (AR) of networks also fared better than advisers who were directly authorised.  A...