Under FSMA anyone selling pensions, life insurance or investments must give clients and prospective clients ‘best advice. The financial adviser needs to be aware of the client’s circumstances and show, where possible, that the recommendations are based on an unbiased evaluation.

Rating system (developed by rating agency A.M. Best Co.) that evaluates those factors that affect the overall performance of insurance companies. Provides a weighted measure of a company’s financial strength, performance level, competitive position and ability to meets its obligations to policyholders. A qualitative and quantitative assessment.