Future Proofing Wealth Management Services: the implications of the FSA "Dear CEO" letter

Over the last two years, the Financial Services Authority has raised the bar for providers of Financial Services to the mass affluent market through the action it has taken with large distributors, networks and banks. Last week through a "Dear CEO" letter sent to chief executives of wealth management firms, it signalled its intention to do the same for the wealth management sector and providers of discretionary and advisory portfolio management systems. Gary Storer's article explores the implications of the letter FSA's expectations based on their approaches to the suitability of advice over the past two years.