FSA: Finalised Guidance: Assessing suitability: Establishing the risk a customer is willing and able to take and making a suitable investment selection
March 21, 2011
The FSA feels that the high number of unsuitable investment selections seen in the pensions and investment markets is a significant concern, and is a specific risk to their consumer protection objective.
As a result, the FSA has published a report considering:
- how firms establish and check the level of investment risk that retail customers are willing and able to take (in the wider context of the overall suitability assessment);
- the potential causes of failures to provide investment selections that meet the risk a customer is willing and able to take; and
- the role played by risk-profiling and asset-allocation tools, as well as the providers of these tools