FSA broadens review into wealth managers' advice

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The Financial Services Authority (FSA) has begun a new phase of its review into wealth management, focusing on client outcomes.

It follows a review of 16 firms last year, in which it found 14 posed 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. The FSA sent 'Dear CEO' letters to wealth management firms in June 2011, highlighting its concerns and stating it believed the failings could be prevalent in firms outside its sample. In today's update, the FSA's said its thematic work will now also look into firms' systems and controls and whether they have heeded the regulator's pre...

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