CP17/28: Financial Advice Market Review (FAMR): implementation Part II and insistent clients

Open consultation: CP17/28
01/08/2017
Consultation closes
02/10/2017
Policy Statement
Q4 2017
Q4 2017

We are consulting on rules and guidance that relate to two of the recommendations made by the Financial Advice Market Review (FAMR) in its final report, guidance developed by the Advice Unit, and guidance on insistent clients.

Show CP17/28 (PDF)

FAMR was launched jointly by HM Treasury and us in August 2015 to explore ways in which government, industry and regulators could stimulate the development of a market which delivers affordable and accessible financial advice and guidance to everyone, at all stages of their lives.

In its final report, FAMR set out a series of recommendations intended to tackle the barriers to consumers accessing advice and guidance. The proposed guidance aims to address two of these recommendations:

  • We are updating our rules and guidance to reflect an amendment to the scope of the regulated activity of ‘advising on investments’ in the Regulated Activities Order.
  • We are introducing new guidance to support firms offering services that help consumers making their own investment decisions without a personal recommendation.

Following FAMR, we established the Advice Unit to provide regulatory feedback to firms developing automated models to deliver lower cost advice, or lower cost discretionary investment management services, to consumers.  

As part of its cohort 1 and cohort 2 intakes, the Unit has identified common areas of uncertainty with our rules. Accordingly, we believe it would be helpful for us to provide guidance that can be beneficial to a broader spectrum of firms; therefore in this paper we are proposing new guidance. This guidance will form part of the tools and resources informed by the experiences and insights gained through our work with individual firms.

Finally, we have also included guidance for firms on dealing with ‘insistent clients’.

Who this applies to

Our proposals will most directly impact on:

  • firms providing advice on or distributing retail investment products and financial instruments to retail clients
  • trade associations and consumer groups involved in retail investment markets

What you need to do

Please send us your comments by 2 October 2017: 

Online response form

You can also:

  • email [email protected] or
  • write to: Advice and Distribution Team, Banking, Financial Conduct Authority, 25 The North Colonnade, London E14 5HS

Next steps

We will carefully consider your feedback to this consultation and issue a response in late 2017.

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