FSA proposes to relax rules on suitable lettering

Advisers will face less prescriptive suitability letter requirements under proposed changes to FSA c...

Advisers will face less prescriptive suitability letter requirements under proposed changes to FSA conduct of business guidelines, giving firms discretion over the format and content. Under current rules, the letter has to include certain elements, including why the transaction is suitable for the customer and any possible disadvantages of buying the product. Under the so-called NEWCOB, the requirement suitability report will be less prescriptive on the document used to convey this, as long as it delivers the same outcome. As part of this, the FSA is proposing to remove the specific obli...