Nick Hulme, head of the FCA’s advisers, wealth and pensions, consumer investments department, has spoken on the FCA’s tweaked supervisory focus. He said the FCA continues to focus on good client outcomes and wants to give them flexibility to innovate service that suits their size and client base. For the financial advisory portfolio, this means the following priorities, all of which the FCA has outlined in its portfolio supervision letter:
- reducing and preventing serious harm, specifically in
- retirement income;
- ongoing advice;
- polluter pays capital deductions and
- the risks of consolidation;
- testing and monitoring under the Consumer Duty, involving both nurturing and challenging; and
- the Advice Guidance Boundary Review.
The FCA has become aware of the need to take a less prescriptive and more outcomes-focussed approach to regulation in line with its rules.