The Financial Conduct Authority (FCA) has written to a number of financial adviser firms, requesting information about their delivery of ongoing services, for which their clients continue to be charged after advice has been given.

In its survey, the FCA has asked if firms have assessed their ongoing services in response to the introduction of the Consumer Duty, and whether they have made any changes as a result.

The regulator has also requested that firms provide data on the number of clients that are due a review on the ongoing suitability of the advice they provide, how many received that review, and how many paid for ongoing advice but whose fee was refunded as the suitability review did not happen.

The FCA is collecting this information to assess if its needs to undertake any further regulatory work in this area.

Around 20 of the largest advice firms are receiving the survey to allow for the widest possible understanding of market practice. The FCA has stressed that the selection is not based on any particular concerns with those firms.

The regulator sent out letters in December 2022 to set out its concerns that advice firms were not adequately considering the nature and costs of ongoing services for all their clients.

A further letter sent out a month after explained how firms should approach the Consumer Duty, which was introduced in July last year. This letter reminded firms that they are required to act in good faith towards customers, avoid causing them harm, and enable and support them to pursue their financial objectives.

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