Skandia: Extend FSA suitability guidance to volatility and risk

A recent consultation paper from the regulator looked at how advisers were justifying investment switches and other replacement business after it found some troubling practices during its review into centralised investment propositions. While it focused on issues such as costs, investment returns and tax, Skandia said it should include explicit references to volatility and risk as other important factors advisers should take into account. Ryan Hughes, portfolio manager at Skandia Investment Group, said: "Returns, cost and tax are naturally very important factors but a customer's under...