In January 2011, the FSA published its proposed guidance on Assessing Suitability.  This draws on a number of FSA thematic reviews and investigations and identifies significant risks to the FSA’s consumer protection objective arising from unsuitable personal recommendations by financial advisers and unsuitable investment selections by discretionary investment managers.  In this practice note we examine FSA’s concerns about how firms understand and assess the risk their customers are able and willing to take; whether firms are selecting the right investments to meet customers’ needs; and the impact on the suitability assessment process in practice.

Download a copy of practice note here.

Following publication of this practice note we were quoted by Citywire. Download the full article here.

You may also be interested in reading our response to the FSA consultation here.