FSA wealth manager review flags advice concerns

The review sampled 16 wealth management firms which provide advisory and or discretionary investment management services, predominantly to retail clients. Out of 16 firms, the FSA judged 14 to pose a high or medium-high risk of detriment to their customers, based on the number of client files which had a high risk of unsuitability or where the suitability could not be determined. Four in every five files assessed by the FSA suggested a high risk of unsuitability, while two thirds were either inconsistent with the firm's in-house risk assessment model or with the client's attitude to r...