FSA says cost comparisons paramount when switching

The Financial Services Authority (FSA) has underlined the importance of advisory firms carrying our cost comparisons when undertaking replacement business.

The FSA defines replacement business as the switching of any existing investment into a new investment solution. In final guidance on the issue, published earlier this year, the regulator said a prime reason for mis-selling cases identified in pension switching and platform reviews had been unnecessary additional costs. And speaking at Succession's National Members' Forum in London, Rory Percival, a technical specialist at the FSA, emphasised the focus the regulator was putting on monitoring costs. He said: "The message is very simple: unless you're doing cost comparisons and takin...