Financial advisers are delivering suitability reviews in the vast majority of cases assessed in the Financial Conduct Authority’s (FCA) review of ongoing advice, the regulator has revealed.

The FCA had raised concerns that these services may not always have been delivered when offered, and asked 22 of the largest financial advice firms to provide data.

It found that suitability reviews were delivered in around 83 per cent of cases at the firms analysed.

In a further 15 per cent of cases, clients either declined the offer of a suitability review or did not respond to the firm’s offer.

Firms made no effort to deliver the suitability review to clients in fewer than 2 per cent of cases.

The FCA called on all advice firms to review its findings and to consider whether they had met their regulatory requirements and contractual obligations regard ongoing services.

If firms find they are not meeting their requirements and obligations, the regulator urged them to take appropriate action to remedy the situation.

It noted that while the rules on ongoing services were introduced over 10 years ago, consumer needs and expectations, technology, and market practices have continued to change over time, and the FCA will review the regulatory approach for these services going forwards.

“Ongoing financial advice and support can be a fantastic service and can be important in helping people make the most of their money,” stated FCA interim executive director of markets, Simon Walls.

“Relationships between advisers and customers can last many years and can take different forms.

“In the vast majority of the cases we looked at, firms delivered ongoing advice for their customers. But, in a small number of cases, they haven’t attempted to provide the services they offered, and customers are paying for. In those instances, they will need to put that right.

“The FCA will also review the rules on ongoing advice to make sure they remain fit for the future and help as many people as possible to get good support in managing their financial lives.”

Isio head of regulatory risk & rectification, Ben Goodwin, added: “The FCA’s review findings highlight the importance of ensuring clients receive the ongoing advice they are paying for.

“While the results suggest that many firms are delivering or offering annual reviews as expected, the FCA has made it clear that there are gaps, and it is hard to draw conclusions from this report on the extent of non-delivery of ongoing advice across the market."

The FCA recently consulted on plans to introduce targeted support for pensions as part of work to tackle the gap between tailored finance advice and guidance to support consumers in making more informed financial decisions.

The consultation sought views on allowing firms to provide targeted support to consumers in different scenarios, such as if they find someone is drawing down their pension unsustainably or is uncertain about how to take their retirement income.

Whilst broadly welcomed by industry organisations, there have been calls for further clarity on a number of key issues, including how trust-based pension schemes will be able to confidently make the most of targeted support.

This article originally appeared in our sister publication Wealth Investment News.

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