Financial adviser and intermediary rules

This guide covers the adviser and intermediary permissions and standards, on top of the shared duties in run a regulated financial services firm. Everything here applies UK-wide, except claims management regulation, which covers Great Britain only.

Advising on investments: permission

Giving personal recommendations on investments is a regulated activity in its own right — you need the advising permission, and your scope (independent or restricted) shapes your disclosure.

Qualifications and professional standing for retail advice

Retail investment advisers must hold an FCA-recognised Level 4 qualification, an annual Statement of Professional Standing, and keep up structured continuing professional development.

Assess and report on suitability

Before making a personal recommendation you must gather the information the FCA's suitability rules (COBS 9 and 9A) require — the client's knowledge and experience, financial situation and investment objectives — and a suitability report is required for personal recommendations to retail clients. Suitability work on pension transfers carries extra weight: advising on the transfer of safeguarded benefits, such as defined benefit to defined contribution transfers, requires sign-off by a pension transfer specialist.

Mortgage intermediaries

Advising on and arranging regulated mortgage contracts needs its own FCA permission, with conduct rules in MCOB.

Credit intermediaries

Credit broking and other consumer credit intermediation need consumer credit permissions. For the full regime, see FCA consumer credit authorisation and credit broking compliance.

Claims management companies

Regulated claims management activity — from personal injury to financial services claims — needs FCA claims management permission, with its own conduct and fee rules. This regime covers Great Britain; it does not extend to Northern Ireland.

Next steps

Make sure the shared duties in run a regulated financial services firm are in place, then confirm everything with the financial intermediary compliance checklist.