Wealth managers hit out over 'crippling' suitability requirements

Laura Dew
clock • 3 min read

Wealth management firms say they are being "crippled" by suitability requirements as the Financial Conduct Authority (FCA) increases its scrutiny of the sector.

Under existing FCA rules, firms have to provide suitability reports to every retail client to whom they make a personal recommendation. A number of firms have gone further, instigating suitability reviews encompassing their entire business. Concerns have been raised as the FCA prepares to provide more detail on how the industry is dealing with the issue. The watchdog has been visiting firms this year, and will publish a thematic review on due diligence in 2015, encompassing suitability requirements. Existing demands are proving testing for wealth management firms, however, with some f...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Wealth managers

St James's Place results lay bare cost and charging challenges against market tumult

St James's Place results lay bare cost and charging challenges against market tumult

'Structural opportunity' for advice industry

Hope Coumbe
clock 28 February 2024 • 3 min read
SJP CIO Onuekwusi: Retail investors lack appropriate structure to access private markets

SJP CIO Onuekwusi: Retail investors lack appropriate structure to access private markets

Open-ended structures 'have to work'

Valeria Martinez
clock 01 December 2023 • 2 min read
M&G launches full PruFund range on Wealth platform

M&G launches full PruFund range on Wealth platform

‘Greater flexibility and wider choice’

Valeria Martinez
clock 22 May 2023 • 1 min read
Trustpilot