Ongoing advice also counts for 80 per cent of all advice revenue, up from 60 per cent in 2016.
“Where clients are placed into and paying for an ongoing service, we want to ensure that they are receiving a good service at fair value and with clear labelling of charges and routes to cancellation and compensation if [advice is] not delivered,” Hulme said.
“Firms should deal with this proactively, and it goes without saying that firms should also maintain appropriate records in order to demonstrate those good client outcomes.”
With regards to where the FCA's work on ongoing advice, which it wrote to the largest advice firm about, Hulme said an update would be provided “soon”.
Need to be different
Hulme’s theme of the speech featured around ‘it’s good to be different’ as regulation, adviser populations and technology continue to change.
He emphasised that the FCA worked with advisers going forward to help support clients better.
Hulme said: “It's so important we do, given our shared ambition, to support millions of clients with the highest quality advice that helps them realise their life goal, to the fullest for themselves, for their families, for their children.”
He added: “It's not just good to be different. We have to be different as our world is changing.
“From a regulatory perspective, we're already a year on from consumer duty, decade on from pension freedoms, but more widely, we are all surrounded by ageing client and adviser populations, the transfer of intergenerational wealth, a shift from DB to DC and the younger generations engaging with advice in a wholly different, usually social media focused, way.”
amy.austin@ft.com
