A mystery shopping exercise commissioned by the FSCS has found advisers failing to give clients information about the lifeboat fund - potentially altering their investment behaviour in the process, the scheme claimed.
The mystery-shopping exercise, which involved 1,200 phone calls and 25 location visits across 24 firms, found three-fifths (61%) of callers had to proactively prompt an adviser for information about the Financial Services Compensation Scheme (FSCS). In addition, a third of those advisers surveyed (34%) explained the compensation limit for an investment product is £50,000, while just 10% of shoppers said they came away with "a very good understanding" of the FSCS. In failing to bring up information about the scheme, advisers may be unwittingly altering clients' behaviour, as a separate...
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