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

Increasing numbers of advisers are harming consumers, says FCA

0
Written by:
21/01/2020
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.

Santander current account shake-up: Act now

From tomorrow, Santander will double the monthly fee on the 123 Lite current account while the cashback catego...
Santander current account shake-up: Act now

Countdown to new tax charge for freelancers and contractors

Freelancers and contractors have just five months to get ready for employment tax changes that will affect how...
Countdown to new tax charge for freelancers and contractors

Self-employed grant to double as Job Support Scheme revamped

Self-employed workers affected by coronavirus could receive up to £3,750 in the next tranche of grants, double...
Self-employed grant to double as Job Support Scheme revamped

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

  • @YourMoneyUK All you need to know about the latest Current Account Switching winners and losers - hats off to Starl… https://t.co/fAyHhplpoP
  • RT @WeareJust_PR: Many people struggling to make ends meet may not realise they are entitled to financial help or find the system too confu…
  • RT @WeareJust_PR: Many people struggling to make ends meet may not realise they are entitled to financial help or find the system too confu…

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.

Close