The FCA has published the results of its supervision review of investment advisory firms’ practices when acquiring clients from other firms. The review was conducted in response to market changes, including the way in which services are provided to clients and the fact that firms now increasingly adopt a standardised approach to providing investment advice, and in-house investment solutions.

The FCA expressed disappointment overall that none of the firms assessed were able to show on a consistent basis that clients’ needs were considered in a suitable manner, and it found that, while firms focused on the commercial benefits, they did not focus enough on how clients were impacted by the acquisition.

The FCA expects relevant firms to consider the content of the review and assess whether or not there is a need to improve internal practices and procedures.

Copies of the review and the associated webpage are available.