The Financial Conduct Authority has contacted 45 more advice firms to find out about their ongoing charges as part of its work on disclosure.
Earlier this year the FCA told FTAdviser it would be targeting smaller advice firms as part of its follow-up work on the suitability review.
Published in May, the suitability review found the largest firms, and those which are restricted and network members, were more likely to provide suitable advice and to do acceptable disclosure.
But the FCA found that smaller, directly authorised firms, tended to do worse, prompting the regulator to follow-up its findings.
The FCA is understood to be asking firms about how their ongoing services and charges work.
Speaking after the publication of the suitability review Linda Woodall, the director of financial advice at the FCA, told FTAdviser the regulator would also be using its communications programme to send the message about disclosure to firms.
When it came to firm size, the FCA’s review found bigger firms tended to do better when it came to giving suitable advice and explaining how much they charge.
On suitability, firms with between one and two advisers had 91.8 per cent suitable advice compared to 96.2 per cent for firms with 25 advisers or more.
But mid-sized firms – with between three and 24 advisers – did worst, with only 89.3 per cent delivering suitable advice.
This was echoed in disclosure, where firms with between one and two advisers had 42.2 per cent acceptable disclosure compared to 63.9 per cent for firms with 25 advisers or more.
Again, mid-sized firms did worse, with 41.8 per cent acceptable disclosure.
damian.fantato@ft.com
