Summary
What this article covers in 30 seconds
- Garry Evans spoke with TCC Technical Director David Boyhan about the FCA’s ongoing advice review findings.
- David described the headline findings as generally positive and better than many expected.
- He said there is unlikely to be a mandated industry-wide past business review.
- Firms still need to act for about 15% of clients who did not engage and 2% who were not invited.
Compliance Q&A part 1: What are the key findings from the FCA’s ongoing advice review?
Recordsure’s Chief Product and Commercial Officer Garry Evans catches up with TCC’s regulatory expert and Technical Director David Boyhan to discuss the FCA’s release of its findings into its recent ongoing advice review. David specialises in wealth management and helps unpack what firms should know about the FCA’s latest publications regarding ongoing advice services.
In the first of this five-part mini-series, Garry asks David what key findings firms should consider as a result of the FCA release.
Transcript: part one
Garry
Why don’t we start with a bit of summary of the key findings from the FCA’s review?
David
Yes of course, Garry, I think that’s always a good place to start. And I’m pleased to say that the headline news from the findings is generally positive and certainly better than many people predicted.
I think it’s safe to say there’s not going to be any mandated industry wide past business reviews which has to be good news for the sector. That said, there is certainly work that firms will need to do going forward and that specifically they liaise with two groups of clients.
The first group is clients who have not engaged in the process, which the FCA found to be about 15% of clients due an annual review. Firms are going to have to do work with those clients. There are also 2% of clients who have not been invited to engage in a process at all, so firms will need to go back and identify those clients as well.
In summary, the findings are positive but there is certainly work for firms to do as well.
Garry
Thanks, David.
What firms should take from the Q&A
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Frequently asked questions
Garry Evans, Recordsure’s Chief Product and Commercial Officer, speaks with TCC Technical Director David Boyhan.
He says the FCA’s findings are generally positive and better than many people predicted.
David says it is safe to say there will not be any mandated industry-wide past business review.
Firms need to address clients who did not engage in the annual review process and clients who were not invited to engage at all.