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FCA nears feedback completion after suitability review challenges

The regulator has now written to the vast majority of the firms that challenged its conclusions

White paperThe FCA has almost completed its feedback to firms that challenged its suitability review findings, Money Marketing has learned.

The regulator’s wide-ranging review of advice suitability, which covered more than 650 firms and nearly 1,200 individual pieces of advice, completed in May.

Only 7 per cent of advice was judged to be either unsuitable or unclear, but two-fifths of advisers failed on disclosure requirements.

The FCA allowed firms to challenge its findings and provide further evidence to the regulator as a response to the individual feedback received if they did not agree with its conclusions.

One hundred and nineteen firms responded and the regulator amended 35 findings.

FCA director of life insurance and financial advice Linda Woodall told Money Marketing at the time that it was “absolutely right” for the regulator to take challenges on board given the volume of analysis.

Practical lessons from the FCA’s suitability review

The regulator has now written to the vast majority of the firms that challenged its conclusions explaining its decisions in light of any documents provided.

Money Marketing understands that only around five firms are still to hear back, and that the remaining firms will receive responses soon.

All of the challenges were accounted for in the May data.

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