FSA fires warning shot to firms offering DIFs

clock

The FSA has flagged up concerns around the quality of advice surrounding Distributor Influenced Funds (DIFs) and has warned adviser firms it expects standards to improve.

In its first Conduct Risk Outlook published today, the regulator says it has concerns over the quality of advice and sales processes relating to DIFs and, in particular, the potential for conflicts of interests. "Firms with DIFs should understand we have concerns over this market and we would expect them to pay particularly close attention to sales processes here and the quality of their advice, including their obligations under the client's best interests rule," it says. "We continue to monitor this market and expect standards to improve." The FSA says if standards do not improve it ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Court sets trial date in illegal financial promotions case

Court sets trial date in illegal financial promotions case

Lucy Beck pleads not guilty

Sophia Panayi
clock 31 July 2026 • 1 min read
FCA flags weak customer outcome focus in firms' monitoring frameworks

FCA flags weak customer outcome focus in firms' monitoring frameworks

Consumer Duty review found inconsistent governance and oversight

Sophia Panayi
clock 27 July 2026 • 2 min read
Open finance could pose 'existential threat' to advice market

Open finance could pose 'existential threat' to advice market

Consumer Duty Alliance tech forum attendees hear

Sophia Panayi
clock 23 July 2026 • 3 min read