FCA report: 83% of ongoing suitability reviews complete
The FCA will review the rules on continuing advice
In its latest report, the Financial Conduct Authority (FCA) revealed that financial advisers are delivering ongoing suitability reviews in the vast majority of cases.
Data collected from firms indicates that 83% of cases received a suitability review as offered. An additional 15% of cases saw clients either declining or not responding to the review invitation, while fewer than 2% of cases involved firms making no effort to deliver the review.
Context and industry impact
The report underscores the importance of ongoing financial advice in helping clients make informed decisions.
Simon Walls, interim executive director of markets at the FCA, stated, "Ongoing financial advice and support can be a fantastic service and can be important in helping people make the most of their money. Relationships between advisers and customers can last many years and can take different forms."
Walls’ remarks highlight the enduring role of advisers in managing long-term client relationships, even as market conditions and regulatory requirements evolve.
The data reflects the FCA’s ongoing commitment to ensuring that financial advisers provide continuous support and maintain a high standard of service. The high rate of completed reviews suggests that firms are largely meeting their obligations under the current regulatory framework. However, the report also notes that the FCA will review the rules on ongoing advice to ensure they remain fit for the future. This review is expected to address any gaps and help as many consumers as possible access quality financial guidance.
As the FCA considers potential regulatory adjustments, industry observers will be watching closely for changes that could further improve the delivery of ongoing advice. The forthcoming review could reshape practices within the financial advice sector, potentially benefiting both advisers and clients by reinforcing transparency and accountability. In a rapidly changing financial landscape, the FCA’s proactive stance is viewed as essential for maintaining robust consumer protection.
Earlier we wrote that UK Regulator FCA fines Mako £1.66M over £92B cum-ex trades.
