New FSA consumer redress powers could have "catastrophic" implications for advisers who have not conducted proper platforms due diligence, warns Capita Financial Software.
New FSA powers, which came into force this week, require businesses to set up collective redress schemes where the regulator sees evidence of widespread failings. But Capita Financial Software business development director William Watling says this raises the spectre of class action lawsuits being issued by clients against their advisers' choice of platform. "If a client proved they had been detrimentally impacted by an adviser's choice of platform - for example, they could have got certain funds or wrappers cheaper elsewhere - that could potentially mean any client on the same platfo...
To continue reading this article...
Join Professional Adviser for free
- 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