FSA warns firms over "unfair" contract terms

Scott Sinclair
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The FSA is urging adviser firms to revisit any client contracts containing ‘I have read and understood' declarations to ensure they are fair on consumers.

In an update to small firms, the regulator says the law requires consumers to be given an opportunity to examine all the terms in a contract, but says some do not offer this. It follows action taken against national IFA The On-Line Partnership in January last year. The FSA argued the firm's use of the statement ‘I confirm that I have received, read and understood this agreement and agree to the terms set out within' was unfair on clients because it did not give them an opportunity to read and ask questions about the contract before signing it. The On-Line Partnership has since agre...

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