FSA warned IFAs on Keydata advice suitability in 2007

Laura Miller
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The FSA wrote to ten IFA firms selling Keydata products with serious concerns about the suitability of their advice as early as October 2007, but failed to alert the wider industry or investors.

Two years before the regulator placed Keydata into administration, it outlined a catalogue of failings in the IFA firms' marketing and distribution of the Secure Income Bond (SIB) and Secure Income Plan (SIP) products. The letters followed a low-key thematic review into the advice processes of some firms known to be recommending the Keydata SIB or SIP vehicles. But the regulator only published the review's findings to the firms that took part. This week, an FSA spokesperson said the review was considered "too small" to be made public. In its 2007 letter, the FSA warns the firms som...

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