The FCA has published Policy Statement 18/3: Perimeter guidance on personal recommendations on retail investments (PS18/3).

In PS18/3 the FCA follows up on proposed amendments to the Perimeter Guidance (PERG) manual set out in Consultation Paper 17/28: Financial Advice Market Review: implementation Part II and insistent clients (CP17/28).

The FCA has also:

  • published final Handbook Guidance (effective from 23 February 2018);
  • retired Finalised Guidance 15/1, which includes its existing non-Handbook guidance on personal recommendations;
  • published a consumer guide, which explains what to expect from advice and guidance, including the differing kinds of service and regulatory protections.

In PS18/3 the FCA reports that it is introducing new PERG material largely as consulted on but it has made some amendments and included some new illustrative examples, in light of feedback. Among other things, the FCA confirms that the new PERG material does not change the boundary between investment advice and corporate finance advice. Nor does the new PERG material alter firms’ obligations in relation to the FCA’s rules on appropriateness tests.

Firms that provide services that support customers without giving a personal recommendation (or firms that might wish to provide such services) should consider the new PERG material. Firms that provide advice and/or guidance services might wish to consider making the consumer guide available to consumers.

The publication of the new PERG material is the final step in the FCA’s implementation of the Financial Advice Market Review (FAMR) recommendations. The FCA proposes to conduct a review of the impacts of the FAMR recommendations in 2019 and publish its findings in 2020.

View Policy Statement 18/3: Perimeter guidance on personal recommendations on retail investments, 23 February 2018