On 12 April 2017, we blogged that the FCA published Guidance Consultation 17/4: Financial Advice Market Review (FAMR): Implementation part 1 (GC17/4). GC17/4 was the first part of the FCA’s consultation on measures to address the recommendations set out in the March 2016 final report of the FAMR.
The FCA has now published Finalised Guidance 17/8: Streamlined advice and consolidated guidance (FG17/8).
In FG17/8 the FCA sets out finalised guidance that aims to address two of the FAMR recommendations:
- supporting firms offering ‘streamlined advice’ on a limited range of consumer needs (FAMR recommendation 4); and
- clarifying the fact find process (FAMR recommendation 10).
The FCA also incorporates in FG17/8 the following elements of Finalised Guidance 15/1: Retail investment advice (FG15/1) and Finalised Guidance 12/10: Simplified advice (FG12/10):
- adviser charging;
- complaints and redress;
- professional standards;
- appropriateness; and
- discretionary investment management.
All of the other guidance in FG15/1 and FG12/10 will be retired from 3 January 2018, apart from the guidance covering the advice boundary, which is currently being consulted on in Consultation paper 17/18: Consultation on implementing asset management market study remedies and changes to our Handbook.
The guidance in FG17/8 is likely to be relevant to a firm providing streamlined advice on a financial instrument or retail investment product. However, the guidance is not exhaustive, nor should it be read in isolation from the Handbook. In particular, the guidance does not address potential changes which may arise from the implementation of the Insurance Distribution Directive. The guidance is also drafted in line with the Handbook changes implementing MiFID II.
In terms of next steps, in December 2017, the FCA will publish a policy statement following Consultation Paper 17/28:FAMR: implementation Part II and insistent clients (CP17/28) and incorporate new guidance on personal recommendations in the Perimeter Guidance Manual from 3 January 2018.
At the same time, the FCA also proposes to publish consolidated non-Handbook guidance which brings together in one place FG17/8 and new guidance based on the proposed Advice Unit guidance in CP17/28.
View FCA finalised guidance on streamlined advice and consolidated guidance, 28 September 2017