Is it time for platforms to risk-rate products?

Platforms have been accused of putting consumers at risk by permitting highly complex products on their panels. But isn’t suitability down to the adviser?

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Platforms have been accused of putting consumers at risk by permitting highly complex products on their panels. But isn't suitability down to the adviser?

There has never been such a variety of unusual – and complex – products for advisers to research and recommend to their clients. Short, or inverse, ETFs – which effectively bet on the fall of an index or other benchmark – are a prime example. Last week, it emerged that five of the six most popular products on Ascentric were short ETFs – more often used by hedge fund managers than IFAs. But, with access to higher risk products on platforms, where would the blame lie should an adviser’s product recommendation go badly wrong? Difference of opinion Head of proposition at Skandia, ...

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