The Association of Professional Financial Advisers (APFA) has called for clarity from the regulator on caveat emptor to help firms understand what is expected of them when dealing with clients.
In its response to the 'Our Future Mission' consultation, the trade association called for the Financial Conduct Authority (FCA) to clarify consumer responsibility in making financial decisions, pointing to a "tension" in the way the FCA and regulatory bodies approach consumer issues. On one hand, it argued, consumers are considered to be capable of understanding the information presented and the risks and opportunities involved in undertaking a particular financial decision. On the other, it is sometimes implied the customer is "naïve" and unable to react in a rational manner to spec...
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