Financial Conduct Authority  

FCA readies for fresh crackdown on advisers

The cost of PI has been a hot topic for advisers after the new £350,000 ombudsman limit, introduced in April, saw PI costs sore, particularly for DB transfers. Yesterday the PFS said 30 firms had left the DB market because of PI costs.

On pensions and investment scams, the FCA said firms needed to be aware of the current scam risks and ensure their advice processes and systems were robust enough to avoid them.

The letter also covered the Senior Managers and Certification Regime, which came into effect on December 9. Advisers were urged to consider how the requirements would affect their firm and governance.

Other topics included the ban on mini-bond marketing — the FCA said advisers should withdraw their approval for any financial promotion which now does not comply with its rules following the ban on mini-bond advertising — and Brexit preparations.

The FCA said: “We expect you to consider and discuss this letter with your fellow directors and board and agree what, if any, further action you should take. 

“We also expect principal firms to share the contents of the letter with their appointed representatives.”

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