Recession may 'tempt' advisers to act fraudulently - FSA

In its 'Key messages for retail intermediaries', part of its Financial Risk Outlook (FRO) 2009, the regulator warns this risk is the key reason why firms must not cut compliance costs. "Firms should resist the temptation to reduce expenditure on compliance given that pressure on income and profitability could tempt advisers to treat customers unfairly or act fraudulently," it says. "Firms with appointed representatives should ensure that they continue to have compliance resources in place that reflect the risks inherent in their business." A survey conducted by Professional Adviser in...