Some financial advice firms are not adequately collecting and recording client information when offering retirement income advice, according to the FCA.

Whilst most firms were able to demonstrate understanding of their clients’ objectives and circumstances, some firms were not adequately collecting and recording this within the files the FCA assessed for its recent retirement income advice review of 28 firms.

The regulator found contradictory or insufficient information on file about clients’ liabilities and income in retirement, insufficient consideration and detailing of clients’ planned spending and how this might change in retirement, and firms not revisiting clients’ attitude to risk or adequately assessing capacity for loss as they move into decumulation.

In the examples provided by the FCA in its examples of areas for improvement, one firm did not obtain information about a client’s financial situation, including their assets, intended retirement date, or their proposed expenditure in retirement.

Another firm did not gather necessary information, including the assets to be invested in, the potential charges and whether the client was able to accept the risks involved.

The FCA published examples of good practice and potential areas for improvement for firms providing retirement income advice earlier this week.

The regulator said that all firms involved in its review have been given individual feedback. It has also “sought corrective actions” including the provision of potential redress where appropriate.

It plans to issue further article on other key issues of financial advice and wealth management and plans to share these at interactive events across the UK.