Regulators will establish a dedicated wealth management department within the incoming Financial Conduct Authority (FCA) that will help "intensify" the regulatory focus on the sector.
Current Financial Services Authority (FSA) managing director Martin Wheatley announced the plans after criticising the 'minority' of wealth managers who are letting their customers down by recommending unsuitable investments. In a speech delievered to the Chartered Institute for Securities & Investment (CISI), Wheatley (pictured) said the regulator had uncovered examples of managers failing to gather the proper information from customers and then placing money into unsuitable portfolios. Wheatley said the issues were also evident in the FSA's recent review of investment advice given b...
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