On 11 June 2025, the Financial Conduct Authority (FCA) published its new Investment Advice Assessment Tool (IAAT), which is designed to assist personal investment firms in understanding how the FCA assesses the suitability of their investment advice and disclosures to consumers (excluding retirement income or defined benefit transfer advice).
The tool uses a template and comes with a set of instructions covering aspects of the tool including:
- Information requirements.
- Suitability assessments.
- ‘Insistent client’ requirements.
- Adherence to the FCA’s Consumer Duty.
- Initial and specific disclosures.
The FCA flags that firms are not required to use the IAAT but they may choose to use it when assessing their own investment advice. It must be used in accordance with the FCA IAAT licensing agreement and the instruction guide.