Advisers must make sure they have coherent external evidence which proves they acted on an execution-only basis, according to a ruling by the Financial Ombudsman Service.
The Fos has ruled in favour of an IFA firm following a complaint by a husband and wife which alleged the firm’s adviser gave inaccurate advice about their proposed bond investments. The ombudsman found the firm had acted on an execution-only basis and therefore it did not have a duty to advise on the suitability of the investments. The decision overturns the Fos’s first provisional decision, which ruled in favour of the wife because she did not have sufficient knowledge to understand the products and it was assumed, as a result, she had received advice. Adam Samuel, a compliance consul...
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