An influx of dual-pricing queries at the FSA seems to have led to some confusion at the regulator, with small firms contacts failing to properly respond to other queries.
A broker contacted IFAonline.co.uk because he received a stock response to dual-pricing enquiries, which has already been sent to many brokers and publications, despite his query being unrelated to dual-pricing.
The broker had received an e-mail from edeus, promoting a FTSE tracker and access account for brokers as an additional income stream in the difficult mortgage market.
The product is created in conjunction with Newcastle Building Society and carried a proc fee.
However, the broker contacted the FSA because he was concerned about a line in the e-mail, which says: “As your clients will make an informed choice decision to open an account it is not necessary for you to have FSA permissions to give investment advice.”
The broker was concerned about the contention that clients were making an informed choice and e-mailed the FSA so they could clarify the regulatory position.
However, despite taking a fortnight to respond, the FSA replied with a stock response to dual-pricing queries, which was totally unrelated to the sender’s initial query.
The news is likely to provoke more anger from mortgage brokers and IFA firms, many of whom feel the FSA is not taking concerns about dual-pricing seriously and does not properly consider the views and needs of small firms.
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