FCA slams automated investment providers

Poor practice highlighted

The Financial Conduct Authority (FCA) has singled out the poor practice of firms offering automated investment services and automated online discretionary management in its latest guidance paper.

The watchdog's report FG17/8: Streamlined advice and related consolidated guidance found issues in the market relating to service disclosures, suitability assessments, ongoing client relationships, vulnerable customers and overall governance. "We expect automated investment services to meet the same regulatory standards as traditional discretionary or advisory services," the FCA said. "This means taking a proportionate approach to information gathering while maintaining the appropriate level of client protection." The issues Outlining the failures of market participants, the FCA sai...