The CEO of adviser acquirer Fairstone has hit out at rival consolidators who are facing regulatory scrutiny over their acquisition processes, saying some are driving their profits through high charges to clients.
The Financial Conduct Authority (FCA) has written to adviser consolidators to probe how they deal with acquired clients in an information gathering exercise designed to get to know the market. The regulator wrote to firms in November asking them about their processes for integrating clients following an acquisition. It wants to know how effectively client banks are integrated after they are migrated from one firm to another and how their suitability requirements are looked after. It is believed the regulator has written to the majority of large consolidators and is looking into abo...
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