Financial Conduct Authority finds suitability reviews delivered in 83% of ongoing advice cases and will revisit rules on ongoing services

The Financial Conduct Authority (FCA) has published findings from its review of whether financial advisers are delivering suitability reviews that are typically included within paid-for “ongoing advice” services. Based on data requested from 22 of the largest financial advice firms, the FCA found that suitability reviews are delivered in the vast majority of cases, but identified a small set of instances where firms reported making no effort to provide a review despite clients paying for ongoing services. Across the cases in scope, firms reported delivering suitability reviews in around 83% of cases, with a further 15% where clients declined or did not respond to an offer of a review. In fewer than 2% of cases, firms reported they had made no effort to deliver the suitability review. The FCA is asking all advice firms to consider the findings against their regulatory requirements and contractual obligations for ongoing services and to take remedial steps where needed; it is also writing to the reviewed firms with individual feedback and has published a summary of existing rules and guidance on adviser charging and ongoing services. Consumers who believe they have not received contracted services can complain to the firm and then escalate to the Financial Ombudsman Service. The FCA also said it will review the regulatory approach for ongoing advice services, noting that the rules were introduced more than a decade ago and that consumer needs, technology and market practices have changed since then.