According to the review document, the FCA has already provided feedback to the firms targeted by the initial assessment.
It said the next stage would be to target a wider sample of firms, which will begin in October, to test whether they had acted on the FCA’s feedback. Two more reviews will be carried out at six-month intervals.
Clive Adamson, director of supervision for the FCA, said: “This early view shows that, while firms have acted, they still have more to do to if a customer is going to be in the best possible position to understand the price they will pay and the service they will get for that price.
“Firms should carefully consider the feedback covered in this report. We strongly encourage advisers to look at the examples highlighted and take immediate steps to help their customers better understand the charges and services being offered.”
The report also warned that the regulator would “take supervisory or, where appropriate, enforcement action” if firms did not comply with RDR rules.