FSA tells paraplanners to challenge IFAs on suitability letters

clock

The Financial Services Authority (FSA) has told paraplanners they should challenge their financial advisers on suitability letters to help meet regulatory requirements and improve relationships with clients.

Speaking at the Institute of Financial Planning's Paraplanner Conference today, Chris Hewitt, a member of the FSA's Investment Intermediaries Department, explained some of the points raised in the regulator's recent guidance consultation on centralised investment propositons and replacement business. With firms failing to demonstrate replacement business suitability in around 75% of cases it looked at, Hewitt detailed how paraplanners could help. He said: "All too often we see firms missing the opportunity to really understand their clients' goals. This is demonstrated by the use of g...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Open letter slamming FCA email policy sent to regulator and government

Open letter slamming FCA email policy sent to regulator and government

'Alarming lack of consultation'

Beth Brearley
clock 20 March 2025 • 2 min read
Crispin Odey hit with £1.8m FCA fine and ban

Crispin Odey hit with £1.8m FCA fine and ban

FCA cites lack of integrity

Sorin Dojan
clock 17 March 2025 • 2 min read
Reeves to overhaul regulatory regime as part of growth drive

Reeves to overhaul regulatory regime as part of growth drive

FCA and CMA face changes

Sorin Dojan
clock 17 March 2025 • 2 min read