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

The COVER Review: Budget 25 edition

The COVER Review: Budget 25 edition

Joined by Broadstone's Brett Hill

COVER
clock 28 November 2025 • 1 min read
Budget 25: Maintaining IPT rates a missed opportunity

Budget 25: Maintaining IPT rates a missed opportunity

Rate remains at 12%

Cameron Roberts
clock 27 November 2025 • 2 min read
Budget 25: Protection industry reacts

Budget 25: Protection industry reacts

The NHS is "playing ‘catch up'"

Jaskeet Briah
clock 27 November 2025 • 5 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