Regulatory Alerts2019-12-13
Retail Distribution Review: Adviser Categorisation Discussion Document
The Financial Sector Conduct Authority (FSCA) proposes a two-tier adviser categorisation model that requires financial advisers to operate exclusively as either product supplier agents or registered independent advisers, thereby eliminating dual-capacity operations within a single legal entity. The framework mandates clear consumer-facing terminology and narrative descriptions to accurately reflect the scope of recommended products, mitigate conflicts of interest, and clarify accountability between advisers and product suppliers. By permitting both adviser categories to coexist within corporate groups under strict governance and reporting controls, the FSCA aims to enhance market transparency, protect retail customers from biased advice, and sustain viable financial advisory business models.