FCA Commentary

FCA Commentary

Black Swan Partners have published summaries of FCA guidance on key issues affecting the retail investment industry, as well as outlining our view of the implications for the industry. These papers can be downloaded from our document library by completing the form below:

FCA Guidance on Social Media and Client Communications

Key Points:

  1. 1. All financial promotions, regardless of the media used and its character limits, must contain a prominent risk warning
  2. 2. Clients can post promotions or invitations to use a firm on any social media, including forums hosted on the firm’s site, as long as the client does not stand to benefit financially from the communication
  3. 3. Firms have to ensure that anything they communicate on social media is compliant whoever reads it, meaning communications originated by others but shared by the firm and communications originated by the firm and shared by others all have to be compliant

FCA Guidance on Retail Investment Advice

Key Points

  1. 1. Suitability standards are the same for simplified, limited or focused advice as they are for full advice, but can be limited to a specific objective or need. The scope of the service can be limited, but the depth of the suitability obligation cannot be.
  2. 2. In order to constitute advice, there must be a recommendation, related to transactions in investments, that a reasonable person would consider to be presented specifically to a potential investor as suitable or with consideration of his/her own circumstances.
  3. 3. FCA customer research suggests no dominant profile of customer buying without advice, but broadly speaking the majority of those investing without advice make choices which are suitable for their circumstances.
Please enter your details below to download the full summaries form our document library.

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Please be aware that Black Swan Partners do not provide legal advice and the information in these papers should not be treated as such.

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