Ian Stott, client services director at The Consulting Consortium (TCC), explains why the FSA's recent guidance on platforms and centralised investment propositions could signal the emergence of a new mis-selling scandal.
The Retail Conduct Risk Outlook (RCRO) 2012 highlighted platforms and centralised investment propositions (CIPs) as emerging risks. Both were also listed as emerging risks in the 2011 RCRO. On 27 June, the FSA published a new consultation paper (12/12) relating to Payments to Platform Service Providers and Cash Rebates from Providers to Consumers. These potentially-devastating papers should serve as a red alert for all advisory firms that action is needed to conform to the new view from the FSA, but it is clear that some have underestimated their impact. Recent FSA communications h...
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