The FSA is considering making suitability reports mandatory for a wider range of financial instruments, including structured products, under a possible extension of its COBS rules.
It says structured investment products, unregulated collective investment schemes, contracts for difference and other derivatives, when recommended to retail clients, may soon fall under its COBS 9 suitability requirements. Currently, firms must provide suitability reports to retail clients if they make personal recommendations on regulated collective investment schemes and investment trusts, among others, but now the FSA may expand this. The possible move is outlined in the final statement of its post-implementation review of rule changes introduced by the Conduct of Business Sourceb...
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