You are here: Home - Retirement - Retirement planning - News -

Increasing numbers of advisers are harming consumers, says FCA

Written by:
The City regulator has announced a crackdown on financial advisers after it found the practices of an increasing number of firms caused harm to consumers’ wellbeing.

In a letter to the CEOs of regulated financial advice firms, the Financial Conduct Authority (FCA) said it had identified four key ways clients of advisers may be harmed.

These are: receiving unsuitable advice for their needs and objectives; falling victim to pension and investment scams; not receiving redress from the Financial Ombudsman or firms being unable to compensate consumers; and paying excessive fees or charges for products and services.

As a result, the FCA said preventing harm was “a key priority” and that there will be increased focus on these areas as part of its wider supervision of firms over the next two years.

The letter said: “You need to ensure the advice you provide is suitable, costs and charges are disclosed clearly, and you act in the best interests of your clients. Conflicts of interest must be identified and where they cannot be prevented, disclosed and managed.”

It also focused on defined benefit pension advice, an area the regulator has previously highlighted as a concern.

The FCA said despite tougher rules around DB transfer advice, “too much advice is still not of an acceptable standard”.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Government hauled to court over self-employment grant discrimination claim

The chancellor is due to appear at the High Court this Thursday over claims the government discriminated again...
Government hauled to court over self-employment grant discrimination claim

Test and Trace £500 payment scheme extended

Low-income workers required to self-isolate will be able to claim a £500 support payment until the end of Marc...
Test and Trace £500 payment scheme extended

MPs vote for Universal Credit reduction to be scrapped

MPs voted last night on maintaining the Universal Credit uplift. There were 278 votes in favour of the motion...
MPs vote for Universal Credit reduction to be scrapped

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week

Read previous post:
Property transactions rise in December

Residential property transactions increased year-on-year in December by almost seven per cent, according to government figures.