FSA issues small firms long-stop warning

Scott Sinclair
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The FSA today threatens "follow-up action" against firms considering inserting a long-stop clause into their terms of business (ToB).

In an update to its ‘Information for smaller firms' section on its website, the regulator says such action will likely be in breach of several of its rules, including its treating customers fairly (TCF) initiative. The warning follows the actions of one IFA, Phil Castle of Kent-based Financial Escape, who is seeking legal advice over whether he can redraft his key facts, client agreement and ToB documents to include a complaints deadline. The FSA says it is aware some advisers were "disappointed" by its decision - outlined in its first RDR paper in June 2007 - not to reintroduce the 1...

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