Compliance
FCA Implements Disclosure Assessment Template For Advisors
The Financial Conduct Authority has released a guide explaining how it will measure advisers disclosure efforts against its expectations.
The Financial
Conduct Authority has released a guide explaining how it will
measure advisors' disclosure efforts against its
expectations.
It comes after its latest Retail Distribution Review which found
unacceptable shortcomings from advisors in this area.
The assessment tool allows advisors to check how they explain
charges and their regulatory status to clients.
The FCA said it will use this template to assess disclosure in
its third review into RDR compliance beginning next month.
In April the FCA released its second of a three-cycle assessment
of how firms have implemented the disclosure elements of the
Retail Distribution Review and found that 73 per cent of firms
failed to provide the required information on the cost of
advice.
The FCA said that too many advisory firms are not being clear
with consumers on how much advice costs, the type of service they
offer and what on-going services they provide.
Whilst failings appear widespread across the industry, wealth
managers and private banks “performed poorer than other firms in
nearly all aspects” when explaining the cost of advice to
clients, the regulator said.
