The FCA has published Consultation Paper 17/28: Financial Advice Market Review: implementation part II and insistent clients (CP17/28).
In CP17/28 the FCA sets out proposals it has developed to support the UK’s advice sector following the recommendations set out in the Financial Advice Market Review (FAMR) final report.
Proposed changes include:
- Handbook changes arising from the amendments that HM Treasury has made to the Financial Services and Markets Act (Regulated Activities) Order 2001 (RAO) so that most authorised firms would be exempt from the regulated activity of ‘advising on investments’ unless they are providing a personal recommendation. The changes to the RAO come into effect on 3 January 2018;
- perimeter guidance (PERG). The FCA proposes to amend PERG in order to give firms more clarity on what amounts to a personal recommendation;
- guidance based on the experiences of the FCA’s advice unit. This unit was set up in May 2016 and provides regulatory feedback to firms developing automated advice models; and
- guidance on the treatment of insistent clients. The FCA reports that firms have asked for more support in this area, particularly in light of the legislative requirement that consumers must receive regulated advice for any defined benefits where the value of the fund transferred exceeds £30,000.
The deadline to for comments on CP17/18 is 2 October 2017.
In September 2017 the FCA proposes to publish Finalised Guidance following its earlier Guidance Consultation on FAMR implementation which covered streamlined advice, fact finds and a factsheet for employers and trustees, setting out the support they might provide to employees without needing authorisation. The FCA will also set out the guidance it is retaining from Finalised Guidance 12/10 and Finalised Guidance 15/1.
In December 2017 the FCA proposes to publish a Policy Statement to CP17/28.