Why suitability is the 'problem which refuses to die'

Wealth managers struggling with FCA guidance

The FCA's recent warning more needs to be done to improve the suitability of investment portfolios provided by wealth managers should be "no surprise", according to regulatory consultancy Bovill, as firms become over-reliant on automated systems.

In its thematic review on the Suitability of Investment Portfolios, published last week, the regulator said although some progress has been made since extensive work on the subject was last carried out in 2012, "substantial" improvements were still needed. Its findings add further pressure on wealth managers, who have previously stated they find the suitability requirements 'crippling' and 'burdensome'; an individual suitability report can typically take up to four hours to complete. Mark Spiers, head of banking, investments and lending at Bovill, commented: "The findings definitely a...