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FCA finalised guidance on investment advice boundaries

PFS Policy Briefing

Publication date:

30 January 2015

Last updated:

22 September 2017

Following a guidance consultation in July 2014, the Financial Conduct Authority (FCA) has issued its finalised considered view on the boundaries between what is and what is not a personal recommendation in the retail investment market.

  • For advice to be regulated, it must relate to a specific investment and must be given to the person in their capacity as an investor or potential investor.
  • The regulator provides examples to illustrate the difference between advice and information, and the distinctions for generic financial advice.
  • Following the feedback received from the market, the FCA have strengthened their initial proposals, including amending the terminology, simplifying its communication, providing extra examples and introduced a definitive glossary of terms.

Next steps:

  • The guidance paper published this month represents the FCA's final considered viewpoint of the regulated advice boundary.
  • The FCA will consult in the upcoming months on proposals to replace the ABI Code on Retirement Choices.

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This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.

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