The Financial Conduct Authority (FCA) will repeat its suitability review in 2019 it announced today.
Alongside the findings of the current review, the FCA said it would repeat the in 2019 to look at how advisers have complied with new rules such as MiFID II.
‘We intend to repeat this review in 2019 and measure how the sector has responded to our findings and communications plan. This review will not only look at suitability of advice and compliance with our disclosure rules, but also compliance with any new relevant rules, including those under MiFID II, PRIIPS and IDD,’ the FCA said.
The FCA said it will also focus future supervisory work on the ‘root causes’ it identified in the suitability review.
This would specifically look at risk profiling and replacement business.
‘We will also use our supervisory resources to focus further on those areas where there might be a small number of firms that are giving rise to a high level of consumer detriment. In our 2017/18 Business Plan, we announced that we will carry out further work to target those firms providing unsuitable advice about complex products,’ the FCA said.
In 2017 and 2018 the FCA said it plans to follow up the suitability review with a communication programme which will look at disclosure, replacement business and risk profiling.
'We previously published reports on all of these areas; therefore, the aim of the communication programme is to use a variety of methods over an on-going period of time to help embed our key messages within the sector,' the FCA said.