View more on these topics

FCA may probe “blurring of lines” between advice and execution-only

Head of wealth management and private banking says boundaries between advised and non-advised services are being tested.

The FCA says it may investigate an apparent “blurring of the lines” between advised and execution-only services.

Speaking at a Tax Incentivised Savings Association event in London last week, FCA head of wealth management and private banking Bob Ferguson said the services offered by some firms were “blurring the distinction between execution-only and advice”.

He said: “We are very conscious that the boundaries of what firms see as execution-only and what firms see as advice are being tested. We may probe into that.”

Ferguson also said firms can expect to see “a good deal of supervisory attention from the FCA” around their charging structures, and questioned whether firms are “rewarding people for taking advantage of their clients.”

Ferguson heads up the new division within the FCA’s long-term savings and pensions team which concentrates on the supervision of wealth managers and private banks. The department has been active since July.

His concerns echo those of FCA technical specialist Rory Percival, who warned in April that execution-only services could be subject to advice rules if customers believe they have received advice.

Hudson Green & Associates principal Ian Hudson says: “The regulator would be right to look at this, as it is a grey area. Right now firms are able to flex the definition of what is execution-only, which can sometimes be a full-blown advised service without the required level of investor protection.”



PFS appoints David Ingram as president

The Personal Finance Society has appointed Aim Two Three partner David Ingram as president. Ingram succeeds HK Wealth Managers managing director Garry Hale in the role. Phoenix Temple Wealth Management’s Brendan O’Ciobhain has also been named as vice president, while Chadney Bulgin joint managing partner David Thomas retains his vice presidency. Ingram says: “Garry Hale […]


IFS: Millions more to drift into 40p income tax band by 2030

The Institute of Fiscal Studies director Paul Johnson is predicting at least half of all basic rate taxpayers will pay 40p income tax over the next 15 years as millions more drift into the higher rate band. Speaking at a fringe event on taxation at the Labour party conference in Brighton yesterday, Johnson also predicted […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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