FCA pleased with firm conduct on ongoing advice

The FCA has published the results of a survey of 22 firms, in which it checked whether firms that are charging their clients for ongoing advice and relating services are meeting their regulatory obligations and had been doing so over the past 7 years. It had been concerned that firms may not have been delivering the services they should, but its review has found that in 83% of cases the firms have been providing the required suitability reviews. Of the remainder, in 15% of cases the clients either declined the firm’s offer or did not respond to communications. Only in 2% of cases did the firm not make any effort to deliver the review.

The FCA is pleased with the results, but notes the population it reviewed was not a representative sample and that there were significant differences between submissions, with a few firms not easily able to provide the required information. It also says that it needs to review its regulatory approach to the services since the rules are now over 10 years old and service delivery has moved on since then. It will be following up on this issue as part of its review into requirements in the light of the Consumer Duty.  It asks all firms to review its findings, since of course any firm that has not met requirements must put things right with its customers.