AWD widens product literature checks
Share
AWD Chase de Vere is reviewing product literature for other types of investments after FSA findings on financial promotions for structured products.
The FSA said last week that structured promotions which use descriptions including safe, secure, protected and guaranteed have to explain clearly and unambiguously what they mean. It said claims of potential benefits must be balanced with fair and prominent indication of relevant risks.
AWD Chase de Vere senior manager Jason Walker says: “There are quite a few open-ended investments that use the words protected and secure and enterprise investment schemes which use the same sort of terminology. We will point out to companies we are concerned about the use of these terms based on what the FSA has said about structured products.”
Walker says AWD will emphasise in suitability letters to clients that although the investment is suitable for their risk profile, it is not comfortable with the wording of the literature.
He says: “I do not think the FSA will be proactively looking at this now because they probably have their hands full but in a year or two they might.”
An FSA spokesman says: “You need to be clear exactly what you mean when you talk about guaranteed or secure.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
Readers' comments (1)
Phil Castle | 6 Nov 2009 10:12 am
Is this for the consumers benefit, the firm or the FSA?
What goes in a report, in the KFD or in a sales brochure can bear NO resembelance to the emphasis put on something face to face or over the phone to a client. People buy people and it is what is SAID that needs to be recorded. The FSA coudl easily say today that all clients meetings should be recorded for teh avoidance of doubt, just as they have already suggested with general insurance.
Let's wake up an realise people DO NOT read even a 10th of what is issued to them, but they DO listen to what is said and how it is said and act accordingley.
Unsuitable or offensive? Report this comment