The FCA has contacted advisers for more information on their ongoing services and charges after a review of the market found more than 40 per cent of IFAs breached disclosure rules.
The FCA completed a review of around 650 advice firms earlier this year, finding that, while 93 per cent demonstrated suitable advice, 42 per cent did not meet disclosure standards, and a further 5 per cent were rated as uncertain.
The regulator has now sent a follow up information request to 45 advice firms, Money Marketing has learned, to better understand the nature, scope and delivery of their ongoing services and charges.
The firms are understood to come from a broad sample and include both independent and restricted firms.
The work forms part of the regulator’s general supervision of the sector and will be used to decide if further action is needed down the line.
In its suitability review, the FCA said that initial disclosure was the main area it found unacceptable results. It highlighted concerns including where firms did not estimate the length of each service after disclosing an hourly fee structure, and where they used charging structures that had a wide range.
The FCA said when it released the results of the suitability review that it would be part of an “communication programme which will run over the course of 2017 and into 2018” and would share good and bad practice examples as part of this.
Two senior staff at the FCA will be discussing suitability and disclosure on our panel at the Money Marketing Interactive conference, which is being held at the Majestic Hotel in Harrogate on 14 September. To join over 100 advisers and register to secure your free place, click here