FSA tells paraplanners to challenge IFAs on suitability letters

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The Financial Services Authority (FSA) has told paraplanners they should challenge their financial advisers on suitability letters to help meet regulatory requirements and improve relationships with clients.

Speaking at the Institute of Financial Planning's Paraplanner Conference today, Chris Hewitt, a member of the FSA's Investment Intermediaries Department, explained some of the points raised in the regulator's recent guidance consultation on centralised investment propositons and replacement business. With firms failing to demonstrate replacement business suitability in around 75% of cases it looked at, Hewitt detailed how paraplanners could help. He said: "All too often we see firms missing the opportunity to really understand their clients' goals. This is demonstrated by the use of g...

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