Emma RadmoreThe FCA has published a consultation paper on proposed changes to its rules to make it easier for firms to give a broader range of simplified advice. It suggests:
- one set of common rules for suitability, and clarifying that advisers should consider “sufficient” information when assessing suitability for simplified advice purposes, rather than the current “necessary” information;
- rebalancing the role of suitability communications; and
- giving firms more flexibility on how they deliver ongoing services, including removing the requirement for an annual suitability review.
The plans include removing distinctions between advice on MiFID products, IBIPs and other life policies and pensions and deleting rules where the FCA feels the Consumer Duty provides adequate protections. So COBS 9 and 9A will be consolidated int a new COBS 9C. It also plans to retire FG17/8, which it feels is outdated and has not in any event achieved the purpose of giving firms confidence to adopt limited scope advice products.
It is also looking to modernise the rules on trail commission, but is not planning to change the qualification or adviser charging rules. It is asking for views, rather than consulting on specific change, in relation to its rules on commission payments and professional client suitability standards.
Consultation closes on 22 May 2026.