FSA concerns over splits

Professional Adviser
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Regulator claims marketing material may have led to investors being sold inappropriate shares

The marketing material for split capital trusts given to investors and advisers did not adequately disclose or explain the risks of investing in certain splits, according to the FSA's report on the sector. This, said the FSA, suggests that some consumers who invested in splits on the basis of disclosures by product providers, have inadvertently acquired an unsuitable product due to the inadequate disclosure of the risks involved. Where the FSA said there had been breaches of its rules or principles it would take action and said that it will now begin formal investigations into alleged ...

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