The Financial Services Authority (FSA) has written to fund group chief executives outlining its concerns over conflicts of interest policies and is considering taking enforcement action after a review of industry practices.
The review found that some firms had breached rules regarding the use of customer commissions and the fair allocation of trades between customers, and identified that "many firms" had failed to establish an adequate framework for identifying and managing conflicts of interest. The regulator sent out letters this morning and is requiring recipients to review their conflict of interest policies in the coming months. "We concluded that most of the firms visited could not demonstrate that customers avoid inappropriate costs and have fair access to all suitable investment opportunities," t...
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