The FCA has said it will launch further work to crack down on those giving unsuitable advice on high-risk products.
In its business plan for 2017/18 released this morning, the regulator notes one of the main issues in the retail investment market is that consumers might receive unsuitable investment advice.
In particular, it says it will conduct a review into unsuitable advice on complex products, to be completed by the fourth quarter of 2017/18.
The regulator also says it would also conduct follow up work to its current review of advice suitability, to be completed by the second quarter of 2018/19.
The FCA notes from its investigations so far, “firms do not always consider consumers’ needs and outcomes appropriately when they develop products, distribution propositions, and offer wealth management services” and “advisers may give insufficient attention to the total cost of investment products and of advice, which results in poor value for money for consumers.”
It adds: “We will carry out further work to target those firms providing unsuitable advice about complex products.”
The FCA adds that among it priorities was developing further resources to guide entrants into the robo-advice market, but that it would also be assessing the outcomes of robo-advice by the middle of next year.
The regulator says: “Depending on the speed with which this area grows, we may decide to test the suitability of advice given by firms providing this kind of advice.”