UPDATE: FSA broadens review into wealth managers' advice

The Financial Services Authority (FSA) has begun a new phase of its review into wealth management, focusing on client outcomes.

Following on from a Dear CEO letter sent to firms last year, the FSA's thematic work will also look into firms' systems and controls and whether they have heeded the regulator's previous warnings and concerns. In the letter, sent in June 2011, the FSA highlighted concerns around the suitability of client portfolios in a sample of firms in the industry. It found 'widespread failings', which it said may be prevalent in firms outside its sample. Since then, the FSA says it has continued to interact with the 16 firms in its original sample to mitigate the risks identified, principally ...