FCA's suitability probe prompted by FAMR concerns

Regulator believes its recommendations may hamper the suitability of advice

clock • 1 min read

The Financial Conduct Authority (FCA) will begin a new round of suitability assessments next month motivated by concerns that the Financial Advice Market Review (FAMR) will affect the way advice is conducted.

The regulator has sent a letter to 700 firms requesting that they submit files for assessment.

Specific areas favoured by the FAMR report that might affect the suitability of advice include the focus on technology and robo-advice and changes to definitions, according to the regulator. 

The 700 firms have been selected at random, although the sample aims to reflect the shape of the market.

Some 500 of the firms will be small, and required to show one file to the regulator, the remaining 200 will be asked to show several files, with the exact number dependent on the size of the firm.

The assessed files will fall into three categories. Non-pensions investment advice, pensions accumulation advice, and retirement income advice.

The FCA announced its plans to conduct a new round of supervision in its annual Business Plan 2016/17 released earlier this month.

 

More on Regulation

AI 'major opportunity' to improve customer outcomes: FCA

AI 'major opportunity' to improve customer outcomes: FCA

According to review into how AI could reshape retail financial services

Sahar Nazir
clock 27 January 2026 • 2 min read
IPT haul up to £6.8bn in FY25/26

IPT haul up to £6.8bn in FY25/26

£43m collected in December

Cameron Roberts
clock 22 January 2026 • 2 min read
IHT receipts rise £200m in first nine months of tax year

IHT receipts rise £200m in first nine months of tax year

Treasury recorded £6.6bn from estates

Jenna Brown
clock 22 January 2026 • 3 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read