FCA review finds 73% fail to show true cost of advice

Nearly three quarters of firms are still failing to show clients the true cost of advice, following a "wake-up call" FCA review which has already put two firms at risk of enforcement action.

Too many advisory firms are not being clear with consumers on how much advice costs, the type of service they offer - whether it is restricted and the nature of the restriction - and what on-going services they provide, the Financial Conduct Authority (FCA) said. It is likely two firms with "egregious failings" - one financial advisory firm and one wealth management firm - will be referred to the FCA's Enforcement and Financial Crime Division, the regulator said. Of the 113 firms involved in the review, 73% failed to provide necessary information on the cost of advice, according to th...