FSA updates guidance on DIF use

The FSA has issued updated guidance on firms' use of distributor-influenced funds (DIFs).

The regulator last issued factsheets on DIF use in 2008 but has updated its guidance to take account of changes to the rules as a result of the Retail Distribution Review. It said given the potential for conflicts of interest to arise, it expects firms to put in place robust systems and controls to ensure the use of these products is in the best interests of each client. The guidance tackles issues including adviser charging, suitability, independence and communication with clients. You can read the updated guidance HERE.