Government to change financial advice definition for regulated firms

With effect from 3 January 2018

Julian Marr
clock • 3 min read

The government is to change the definition of financial advice for regulated firms - replacing, with effect from 3 January 2018, the two existing interpretations with a single one based on the Markets in Financial Instruments Directive (MiFID) definition of a personal recommendation.

Having considered the 63 responses to the consultation it launched last September, HM Treasury said the new definition would "give greater certainty to regulated firms, allowing them to better help their customers" while ensuring there was "proportionate protection in place to avoid consumers being sold inappropriate products". Amending the definition of financial advice: consultation response stressed the change related only to regulated firms, with the exception of "a negligible number" that hold only the Article 53 permission, or only the "agreeing to advise on investments" permission...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Regulation

Closing the protection gap will require advisers to think differently

Closing the protection gap will require advisers to think differently

“We won't close it through the actions of one adviser, one firm or one network”

Toni Smith
clock 30 September 2026 • 4 min read
Triple lock to change in 2030: Burnham

Triple lock to change in 2030: Burnham

PM said state pension to ‘rise at least by prices [inflation] or 2.5%’

Isabel Baxter
clock 29 September 2026 • 3 min read
Burnham to propose social care plans at general election

Burnham to propose social care plans at general election

Aims to be preventative

Jaskeet Briah
clock 28 September 2026 • 2 min read