View more on these topics

FCA eyes 40 firms in adviser recruitment and training probe

The FCA is analysing information from 40 firms about their adviser recruitment processes and what quality checks are in place on the advice they give.

Earlier this year, Money Marketing revealed that the FCA sent letters to a sample of firms asking about training, competence and hiring records for staff.

A Freedom of Information Act request now reveals that the FCA targeted 40 firms as part of the work, and is still in the process of analysing the information it collected.

The FCA says it worked with the Financial Ombudsman Service and Financial Services Compensation Scheme to decide which firms to approach.

Firms had two weeks to respond with the required information, the FCA says. While some were provided with an extension due to difficulties, three of the 40 firms missed the deadline, and did not supply the information until they were contacted again by the regulator.

How should advisers attract and train new talent?

The FCA’s response to the FOIA request reads: “We can confirm as part of our ongoing supervision we have contacted a number of financial advice firms to gain a better understanding of their procedures when recruiting advisers and the systems and controls they have in place to monitor and oversee the quality of their advice.

“We identified the firms the FCA would write to through analysis of information and data we would normally rely on for the supervision of firms. This includes, but is not limited to, complaints data, FOS awards and FSCS claims.”

However, the FCA says it is unable to make the information request or the responses received public due to restrictions in the FOIA.

The regulator says: “Our work is ongoing and we have not yet concluded what further work may be needed. Any further work would be fed back and followed up on a firm-specific basis as part of our supervision of these firms.”

Earlier this month, the FCA announced it had worked with the Chartered Insurance Institute on a new exam to give advisers the option of re-evaluating their competence once a year.

Other professional bodies have said they may look to follow suit and provide similar ongoing testing.

Recommended

2

L&G to pay redress over advice to leave DB scheme

Legal and General could pay up to £150,000 in compensation to a client for the advice it gave them to transfer their accrued final salary benefits into a personal pension. In a Financial Ombudsman Service ruling, Mr B complains a Legal and General adviser he met in 1998 gave him unsuitable advice to transfer. He […]

Sipp provider to pay out over non-standard investments

The Financial Ombudsman Service has ruled in favour of five individuals who lost nearly £100,000 after transferring their pensions into non-standard investments using Sipps. In June, law firm Anthony Philip James & Co issued five cases against Sipp administrator Guinness Mahon Trust Corporation over allegations it worked with unregulated introducers to facilitate non-standard investments. In […]

SJP poaches from fund manager for marketing hire

St James’s Place has hired Claire Blackwell as director of marketing from Newton Investment Management. Blackwell says: “We have a responsibility to continue to develop ourselves and our proposition in the interests of better financial outcomes for clients.” SJP shuns new CII exam in favour of in-house programmes She has held a variety of positions across the […]

2

Pru and Old Mutual avoid sanctions after FCA closed-book review

Prudential and Old Mutual are among four providers to have avoided sanctions from the FCA as the regulator completes its investigations into firms’ closed-book practices. The FCA has finally ended its inquiry, more than two years after it originally reviewed 11 providers over how they treated longstanding customers. The regulator expressed particular concerns about failures […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. More pointless job creation prodnosery.

    • I beg to differ. I haven’t often come across a recruitment process that actually does a credit check and ensures that the candidate is solvent – for starters.

      Most firms work on the basis if the candidate can stand unaided and breathe then he may be a prospect. Otherwise they just poach from another firm and are not too fastidious about anything other than production figures and how many clients will come aboard.

      I personally think the review is ‘a good thing’.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com