Insurance broker Towergate is in talks with the Financial Conduct Authority (FCA) over advice on enhanced transfer values (ETV) and unregulated collective investment scheme (UCIS) given to clients by its adviser arm Towergate Financial.
The group is conducting a review to identify whether any flaws in the sales process have caused customer detriment. Towergate said it stopped advising on ETV's - the value an employer offers an employee for their defined benefit (DB) fund in return for them transferring out - from the fourth quarter 2012. If customer detriment is found, Towergate could face an FCA fine, paying consumer redress, be forced to change it sales processes or a combination of all three. Alternatively the FCA could decide no further action is needed. Towergate said the investigation is at an early stage...
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