The Financial Services Consumer Panel today welcomed the FSA's publication of an independent study of the benefits of the requirement for firms to send a suitability letter to consumers when firms are recommending an investment product. This letter – which the FSA proposed to retain as a 'report', as a result of MiFID requirements and the FSA's new Conduct of Business Sourcebook – provides consumers with a prompt written record of the recommendation they have been given and the reasons for it.

John Howard, Chairman of the Financial Services Consumer Panel, said:

"We welcome the FSA's publication of research indicating benefits to consumers in getting a clear and concise record of their personal investment decision. Indeed, we believe firms also benefit in having the suitability letter as a record of how and why products are sold. We will continue to press the FSA to ensure that they take a broad range of benefits into account when assessing the impact of certain regulations."

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