A May 2017 report revealed that customers received unsuitable advice in 4.3% of cases and unclear advice 2.5% of the time.
The further review in 2019 will help “identify potential trends in numbers of customers who are at risk”, the regulator said.
Pension transfers
In the 150-page annual report, released on Thursday, the FCA covered a lot of ground, highlighting the action it had taken in the year to March 2018.
One key theme, and presumably the trigger for the second suitability review, was the risks associated with pension transfers.
Acknowledging the potential for considerable consumer harm if unsuitable pension transfer advice is given, the FCA said it has taken “targeted action” where it found concerns.
This included opening 14 enforcement investigations on pension transfers. In the case of the British Steel Pension Scheme, 10 firms ceased providing advice.
£69.9m in penalties
Last year, the FCA imposed 16 penalties totalling £69.9m ($91m, €78.3m), issued 269 final notices and secured 317 unspecified ‘outcomes’ using its enforcement powers.
In addition, it wrote to 152 firms to request details of their high-risk investment activities and how disclosures were made to consumers.
None of the firms were named.
Platform complaints
Recent complaints data revealed that firms received 15,834 complaints about their platform service in 2017/18 – caused by general administrative or customer service complaints.
The FCA warned that consumers who are unable to access their investment platform “will not be receiving the service they reasonably expect and are paying for”.
The regulator said it will monitor trends in the number of complaints to identify how many customers could be impacted.
17% bonus for the boss
The chief executive of the FCA, Andrew Bailey, stands to boost his salary by over 17% when his bonus kicks in.
According to the annual report, he has a basic salary of £440,000, up from £330,000 last year, plus a performance-related payment of £75,000, up from £65,000 a year ago.
He received £30,000 of his bonus in May 2018 and the remaining £45,000 will be held in deferment and only paid following the approval of the remuneration committee in March 2019.
It is interesting to note that Bailey’s bonus is higher than the median remuneration for the FCA’s total workforce in 2018, which is £65,905.
John Stirling says:
To be fair to Bailey (who does seem to be more than a step up from some previous FCA heads) it is also interesting to note from other articles that he has donated his bonus to charity.