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
- 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.
- 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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