A financial advisory business can permit its advisers to refer clients to specialist colleagues within the company and remain independent, following an about-turn by the Financial Conduct Authority (FCA).
In a note published on 25 September, the regulator said it had listened to the concerns of stakeholders and permitted a "wider interpretation" of its guidance on internal referrals, provided appropriate systems and controls are in place. The issue affects situations in which an adviser may want to internally 'outsource' specialist work such as income drawdown. The update is in contrast to a thematic review published by the FCA in March, which suggested all advisers should be willing and able to advise on all retail investment products (RIPs). That paper read: "We have seen cases w...
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