The Financial Services Authority (FSA) today said it was "time to put right" problems it had identified with advisers switching client investments.
Linda Woodall, FSA head of investment intermediaries, said the regulator was disappointed to find examples of poor advice after reviewing some 180 customer files across 17 businesses. The FSA calls the practice 'replacement business', referring to any case where an adviser switches a client's investment from one product or solution to another. It has published examples of good and poor practice it uncovered during the thematic review, which originally related to firms' use of 'centralised investment propositions such as distributor-influenced funds (DIFs), discretionary fund managers ...
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