In the letter sent today (15 February), the FCA has asked for data on the number of clients due a review of the ongoing suitability of the advice as part of the service, how many received that review, and how many paid for ongoing advice “but whose fee was refunded as the suitability review did not happen”.
Advice firms have also been asked how they are assessing their ongoing advice service and whether they have made any changes since Consumer Duty was implemented last year.
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“The FCA is collecting this information to assess what, if any, further regulatory work it may undertake in this area. The FCA anticipates providing a further update having considered the firms’ responses,” the watchdog said.
The regulator indicated it would undertake some cross-firm work in this area in a letter sent in December 2022. In this, it set out its concerns that advice firms “were not adequately considering the relevance, nature and costs of these ongoing services for all their clients”.
Firms have been quizzed based on size instead of concerns over their practices.
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