With model portfolios such an important part of many advisers’ recommendations, a market review could be of great significance as FTAdviser reports.
It is clear that the FCA is effectively addressing almost all parts of the retail market and checking how they measure up against Consumer Duty, one segment and component at time.
The news was announced as a part of a broader CEO letter sent to asset managers. It will be interesting to see how much the regulator looks at the process of recommendations as well as what’s in the MPSs themselves.
An assessment by the Financial Conduct Authority found almost 10 per cent of principal firms did not have correct legal cover in place as FTAdviser reports.
The regulator reviewed PII documentation from 269 companies and in some cases temporarily stopped business activity until compliant PII cover was put in place.
Is this a sign of things to come? Aegon is to focus its platform service on 500 advice firms which use it for new business, confirms the CEO Mike Holliday-Williams as New Model Adviser reports.
Interesting implications for legacy platforms and those advisers who may well hold a platform in reserve.
New Model Adviser in one of its blogs suggests that advisers need to take the findings of the review of ongoing advice suitability seriously. The review while mostly suggesting the market had mostly passed muster may lead to some new rules.
Adviser Kerry Nelson has been charged with defrauding four clients of £2m between 2019 and 2023 by the FCA. She appeared before magistrates in Portsmouth last week.
