The Financial Services Authority (FSA) has expressed concerns about the quality of advice around firms' use of 'centralised' investment solutions after a thematic review flagged widespread failings at some firms.
Publishing guidance consultation today on centralised investment propositions (CIP) and replacement business, the regulator said it had uncovered examples of poor advice and disclosure after assessing more than 180 files at 17 firms. It said, overall, it found the quality of advice to be unsuitable in 33 cases and unclear in 103 cases. It added it found the quality of disclosure to be unacceptable in 108 cases. The FSA identified a CIP as a "standardised approach" to providing investment advice including portfolio advice services, distributor influenced funds and discretionary fund...
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