FCA warns firms on 'self-defeating' transactions

It is telling firms to pay particular attention to the level of adviser charge and of the costs of 'related services', such as referrals to discretionary fund managers, in a series of roadshows organised by the Personal Finance Society (PFS). It is understood to be an area the regulator has identified as a potential problem previously, and is acting pre-emptively. As outlined in the Conduct of Business Sourcebook (COBS), which took effect from 2007 but was updated in December 2012 following changes introduced following the Retail Distribution Review, firms must consider whether a pers...