FCA finds some smaller AMs' processes 'lacked sufficiently' when offering higher risk investments

Not adequately informing investors

The Financial Conduct Authority (FCA) has said some "smaller firms" providing high-risk investments to non-advised retail investors were found to be lacking in its latest report published today (8 May).

The FCA findings focused on high-risk investments (HRIs), conflicts of interest, and the Consumer Duty. With regards to HRIs, most firms were able to clearly categorise their products, but "some smaller firms offering HRIs to non-advised retail investors lacked sufficiently robust processes for these assessments or misunderstood their differences and applicability". US SMIDs bleed more than $13bn after 'Liberation Day' Furthermore, some assessments "were insufficiently challenging or omitted questions tailored to the investment's risks". The FCA found good conflicts of inte...