FSA warns providers over adviser charging facilitation

The regulator is particularly concerned by providers potentially re-labeling existing remuneration as adviser charging without checking whether or not the client has agreed to it. Providers and platforms must ensure the client agreement is "obtained and validated", the letter, sent to compliance officers, explains. It explains it would be contrary to its conduct of business rules (COBS 6.1B.9R (1) and (for consultancy charging) COBS 6.1D.9R(1)) if the instruction to facilitate came solely from the adviser as it "would not have been obtained and validated as being from the retail clien...