10% Drop Notifications
fredboiii95
Member
In light of recent volatility - platforms have issued 10% drop notifications for certain portfolios that have fallen by 10% or more in last quarter reporting period.
From my understanding this requirement was removed from legislation in 2023 with the Edinburgh reforms. However, external compliance have advised that the FCA haven't updated this in the FCA handbook so have a view these notifications should still be issued to clients.
So what is the response / what are other firms doing with this? Are people still sending these notifications to clients even though the law has changed but FCA potentially slow at updating guidance? Interested to hear other peoples thoughts
Comments
https://www.fca.org.uk/news/statements/10-per-cent-depreciation-notifications does this help?
Hi Nathan, thanks for posting. I've seen that but it doesn't confirm that the FCA have removed the requirement.
They haven't updated the FCA handbook either after the change in legislation.