FSA urges firms to review replacement business sales processes

Replacement business refers to switching a client out of an existing investment into a new solution. The FSA made the recommendation in final guidance on assessing client suitability for replacement business and when firms offer a centralised investment proposition, such as discretionary investment management. It follows a thematic review of replacement business, during which the regulator said firms were failing to consider the impact and suitability of additional charges when conducting replacement business, among other failings. Today, the FSA said firms should consider reviewin...