In its final guidance issued today, the FSA set out examples of good and bad practice it discovered around firms' use of model portfolios, discretionary fund managers and distributor-influenced funds.
It follows a thematic review by the regulator, which uncovered widespread failures at some firms. The FSA said poor outcomes can occur if firms fail to: consider the needs and objectives of their target clients when designing or adopting a centralised investment proposition (CIP). consider whether the CIP is suitable for each client on an individual basis. establish a robust control system to mitigate risks which might arise from the CIP. Considering the needs and objectives of your target clients Good practice One firm used feedback from its clients and identif...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
