The Association of Independent Financial Advisers (AIFA) is urging members to challenge the Financial Services Authority (FSA) over proposals to force advisers to compensate clients invested in Arch Cru.
The regulator launched a three-month consultation on establishing a £100m compensation fund last month, saying it already has evidence of "widespread mis-selling". Under the scheme, advisers who recommended the Arch Cru funds would be forced to carry out a past business review using an FSA template and, where mis-selling is found, compensate their customers. It is the first time the regulator has proposed using its power to develop redress schemes, but AIFA said it is not using the power correctly. Policy director Chris Hannant said the organisation was "deeply concerned" about the...
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