Financial advisers fail on disclosure almost half the time, particularly in their initial information on cost and services, the Financial Conduct Authority (FCA) has warned.
In its latest suitability review the regulator said it was "disappointed" to find the advice sector provided "unacceptable disclosure" in 41.7% and "uncertain disclosure" in 5.4% of the cases it had looked at. This meant advisers met the FCA's disclosure requirements in a mere 52.9% of cases, the regulator said. The FCA had assessed 1,142 cases in 656 firms. In particular, advisers failed to be clear with their clients on things such as cost and services, the FCA said. Firms did not fail to provide cost information as such, instead they were disclosing charging structures with wide...
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