The UK Financial Conduct Authority (FCA) has published a new webpage setting out their findings of whether financial advisers are delivering the ongoing advice services that consumers have paid for. The review focused on delivery of suitability reviews as firms generally included these as part of their ongoing advice service. The FCA found that in 83% of the cases where suitability reviews were promised, they were delivered. Firms reported that in a further 15% of cases, clients had either declined the review or not engaged with the firm's request for the information needed to conduct a review. There were fewer than 2% of cases where firms reported they had made no effort to deliver the suitability review to clients. However, the FCA notes that there were differences in the results across the firms surveyed and the population surveyed was not a representative sample. Additionally, a small subset of firms was not readily able to provide data for all of the years the FCA requested.
All firms are encouraged to read the FCA's findings and, looking back to 2018, consider whether they can evidence that they have delivered all the services they were required to deliver, as set out in their contracts or as required by FCA rules, or whether a remedy is required. Although the FCA does not currently view this issue to be systemic, it will monitor complaint numbers and intends to conduct further work later in 2025 to assess how firms have responded to the issues identified and review actions that firms have taken. The FCA also plans to review the existing rules relating to financial advisers' ongoing services and will engage with the sector in 2025 on this review.
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