Advisers have expressed their anger the role of the FSA in properly regulating structured products has not been addressed and they are being made the scapegoats for failings in the sector.
Many advisers have contacted IFAonline saying the regulator’s own understanding of structured products appears to be lacking and they should have warned advisers much earlier about the risks associated with the products. Their comments come after yesterday’s report by the FSA, Quality of advice on structured investment products, which highlights a catalogue of failings around how the risks of the products were assessed by advisers. However, IFAs draw attention to an FSA Factsheet on Capital-at-risk products, issued in February 2004, which makes no mention at all of counterparty risk. ...
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