Regulatory Alerts2017-09-11
Investment and Long-term Insurance Sales Practice Thematic Review 2017
The Guernsey Financial Services Commission issued this thematic review to assess the effectiveness of measures improving the provision of suitable advice to retail clients following the 2015 implementation of Guernsey Financial Advice Standards. The review identified significant deficiencies in licensee practices, particularly regarding the assessment of client capacity for loss, clarity on fees and remuneration, and the distinction between risk attitude and capacity. Key findings highlighted that a majority of reviewed client files were deemed unclear due to inadequate documentation, prompting the Commission to require firms to strengthen policies, procedures, and controls to ensure fair treatment of customers.
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