The Financial Conduct Authority is expected to publish its ongoing advice service review report by the end of the year, following months of surveys, data collection and enforcement notices.
The Financial Conduct Authority (FCA) is the UK’s financial services watchdog, regulating individuals and businesses in the financial industry. The ongoing advice service review is anticipated to cover topics such as pensions and investments, with fees, compliance, product suitability and the new ‘Consumer Duty’ at its heart.
Twenty of the biggest advice firms were surveyed earlier in the year and asked for information about their clients’ annual reviews, whether attitudes to risk and capacity for loss were reassessed, and evidence of any changes to personal circumstances or financial goals.
The FCA issued several Section 166 notices requiring Skilled Person Reviews “to support both its supervision and enforcement functions”. Both St James’s Place (SJP) and Quilter Financial Services (Quilter) were handed these notices earlier this year.
All this probing has led to some financial advice firms issuing new guidance on how advisers should conduct annual reviews. The entire industry anxiously awaits the FCA’s report while the focus continues to be on delivering products and services that meet customers’ needs and offer fair value.
Ongoing advice fees concerns
+ −One of the FCA’s main findings was that investors have been charged for services they have not received. With ongoing advice fees, there is an expectation that clients will meet with their financial adviser at least annually and that a fact-finding exercise is carried out to assess ongoing suitability. Many people have not received such reviews, and some didn’t even realise they were paying for such a service.
TLW Solicitors’ view
+ −Sarah Spruce, Legal Director at TLW Solicitors, says:
“We eagerly await the FCA’s report. Some financial firms have misled customers for too long, meaning they have not received good value for money or the best outcomes for their investments. You shouldn’t be charged for a service you have not received.
“Firms like SJP and Quilter have had to set aside vast amounts of money in anticipation of compensating their clients, acknowledging they haven’t always got it right. Smaller firms are likely to face similar issues.
“Current and former clients of some of these firms may be eligible to claim a refund in relation to the annual fees for ongoing advice they have not received. If you have been affected, as well as a refund for overcharged fees, you may be entitled to the loss of growth on the funds or interest.
“Our specialist team are already dealing with these claims on a ‘no-win, no-fee’ basis. So, if you or a loved one think you may have lost out, get in touch and we can explore your options.”
Ongoing advice fee claims – TLW Solicitors can help
+ −If you have received unsuitable financial advice or have paid for advice that has not been received, speak to our dedicated ongoing advice fees claims team.
We offer a no-obligation consultation about your possible case to see if you may be eligible to make a ‘no-win, no-fee’ refund claim.
Call us on 0800 169 5925, email info@tlwsolicitors.co.uk, or complete one of the forms below.
It is important to get advice as soon as possible, as strict time limits can apply.
Minimum case values apply.
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