Advisers instructed to review ongoing advice systems despite 98% compliance rate

Financial advisers have been directed by the FCA to review their client files to ensure that they are providing, or at least offering, ongoing advice as required under the Consumer Duty. Where this is not happening, "it is likely redress will be due", the regulator has said following a review of 22 of the largest firms.

By Neasa MacErlean

Although non-compliance was occurring in just two per cent of case files, the proportion could be higher across the market. The Financial Conduct Authority says that a "small subset" of firms were not readily able to provide data for all of the seven years it requested and the population tested is not representative.