Your Client Status & Protections
Understanding How You Are Classified and Protected
Understanding How You Are Classified and Protected
When receiving financial advice in the UK, clients benefit from a regulated framework designed to promote fairness, transparency, and accountability.
Part of that framework includes client classification, regulatory protections, and access to dispute resolution mechanisms.
At Hoxton Wealth (UK) Ltd, client protection is embedded within the firm’s regulated obligations. This page explains how client status works, what protections apply, and how UK regulation safeguards individuals who receive advice.
How Clients Are Categorised
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What Retail Client Status Means
Retail Client status provides the highest level of regulatory protection under FCA rules.
This classification ensures:
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Advice must be suitable and demonstrably aligned with your objectives
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Risks must be clearly explained
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Costs and charges must be disclosed transparently
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You receive written documentation outlining recommendations
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You have access to formal complaints procedures
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You may be eligible for compensation schemes
Retail classification is designed to recognise that most individuals do not operate as professional investors and therefore require enhanced protection.
Suitability and Documentation
As a Retail Client, any personal recommendation must be supported by:
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A full assessment of your circumstances
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Consideration of your financial objectives
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Evaluation of your risk tolerance and capacity for loss
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Analysis of alternative solutions
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A written suitability report explaining why a recommendation is appropriate
This documentation forms an important part of your protection. It ensures there is a clear record of the advice process and the rationale behind any recommendations.
The Financial Ombudsman Service (FOS)
If a complaint cannot be resolved directly with the firm, eligible Retail Clients may refer the matter to the Financial Ombudsman Service.
The Financial Ombudsman Service is an independent body established by law to resolve disputes between consumers and regulated financial firms.
If the Ombudsman upholds a complaint, it has the authority to require compensation or corrective action within its statutory limits.
Full details of the complaints process are provided in client documentation and are available on request.
The Financial Services Compensation Scheme (FSCS)
The Financial Services Compensation Scheme provides protection for eligible clients if a regulated firm is unable to meet its financial obligations.
Compensation limits vary depending on the type of product or service involved.
For example:
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Investment business is typically covered up to a specified statutory limit per person, per firm
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Long-term insurance contracts may have different protection structures
It is important to understand that the FSCS does not protect against normal investment losses caused by market movements. It applies where a regulated firm has failed and cannot meet valid claims.
Clients are informed of FSCS eligibility where relevant.
Independent Advice and Market Coverage
Hoxton Wealth (UK) Ltd provides independent financial advice.
Independent advice means recommendations are based on a comprehensive and unbiased assessment of the retail investment market within the firm’s regulatory permissions.
This status requires:
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Consideration of a broad range of products and providers
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No restriction to a limited panel
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Recommendations based solely on suitability
The independent model operates within the protections described above, including suitability requirements and Consumer Duty obligations.
Complaints Procedure
If you are dissatisfied with any aspect of the service provided, you are entitled to raise a complaint.
The firm operates a formal complaints process that includes:
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Written acknowledgement of your complaint
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Investigation by an appropriate member of staff
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A final written response within regulatory timeframes
If you remain dissatisfied after receiving the final response, you may refer the complaint to the Financial Ombudsman Service within the required timeframe.
This structured process ensures complaints are handled fairly and transparently.
Professional Client Status (Where Applicable)
In rare circumstances, a client may request to be treated as a Professional Client.
Professional Client status reduces certain regulatory protections on the basis that the client has sufficient experience and financial understanding to assess risks independently.
This may involve:
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Reduced disclosure requirements
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Different suitability standards
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Limited access to certain compensation mechanisms
Reclassification can only occur where FCA criteria are met and following formal documentation. It is not automatic.
For most individuals seeking financial planning advice, Retail Client status remains appropriate.
Ongoing Regulatory Oversight
In rare circumstances, a client may request to be treated as a Professional Client.
Professional Client status reduces certain regulatory protections on the basis that the client has sufficient experience and financial understanding to assess risks independently.
This may involve:
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Reduced disclosure requirements
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Different suitability standards
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Limited access to certain compensation mechanisms
Reclassification can only occur where FCA criteria are met and following formal documentation. It is not automatic.
For most individuals seeking financial planning advice, Retail Client status remains appropriate.
Your Responsibilities as a Client
Regulatory protection is strongest when both adviser and client engage fully in the advice process.
Clients are encouraged to:
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Provide accurate and complete information
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Inform the firm of changes in circumstances
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Review documentation carefully
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Ask questions where clarification is needed
Clear communication supports better outcomes.
Transparency of Charges
As a Retail Client, you are entitled to clear disclosure of all costs and charges before committing to any recommendation.
This includes:
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Initial advice charges
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Ongoing service fees
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Product provider charges
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Investment management costs
Charges are disclosed in writing and must be agreed before implementation.
Understanding costs forms part of your protection under Consumer Duty.
A Framework Designed for Confidence
The UK regulatory framework is designed to ensure that individuals receiving financial advice are:
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Treated fairly
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Provided with clear information
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Protected by formal dispute mechanisms
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Supported by compensation schemes where applicable
Client classification plays an important role in determining the level of protection available.
At Hoxton Wealth (UK) Ltd, these protections are integrated into the advice process from initial engagement through to ongoing service.
Important Information
This page is for general information only and does not constitute personal financial advice or a recommendation.
The value of investments can fall as well as rise and you may get back less than you invest. Tax treatment depends on individual circumstances and may change. Past performance is not a reliable indicator of future results.
Eligibility for the Financial Ombudsman Service and the Financial Services Compensation Scheme depends on individual circumstances and regulatory criteria. Compensation limits and rules are set by legislation and may change.
Hoxton Wealth (UK) Ltd (Company No. 11180844) is authorised and regulated by the Financial Conduct Authority (FRN 586130). Registered office: 101 New Cavendish Street, London W1W 6XH.
Hoxton Wealth (UK) Ltd does not advise on defined benefit pension transfers or pensions with safeguarded benefits.
