Advisers say Barclays’ £7.7m FSA fine for misselling Aviva’s global balanced income and global cautious income funds is “a damning indictment” of the banks’ sales-driven advice models.
They say the 12,000 Barclays clients who invested £692m in the Aviva funds should have visited an IFA.
Institute of Financial Planning chief executive Nick Cann says: “The fine is a damning indictment of this advice and the process that was followed by this organisation and its advisers.
“It also raises questions about other bank advice models. While the organisation was fined, there is no mention of individual accountability as there was, for example, in the Park Row case. There has to be a level playing field and the consumer deserves better.”
Derbyshire Booth Financial Management managing director Greg Heath says: “As a small IFA, we come across a lot of disenchanted investors like these. We cannot figure out if the cause is poor training or the pressure that bank staff are put under.”
Informed Choice managing director Martin Bamford says: “We have long held the belief that banks have an underlying sales culture. With all the publi-city associated with this, we hope people will realise this is about bad bank selling, not bad advice.”
Verity Wealth Management chartered financial planner Stephanie Pickering says: “Too many clients think you can just walk in and get free advice from a bank. I have to tell people that they are not getting advice, they are getting sales.”
Yellowtail Financial Planning managing director Dennis Hall says: “The misselling would not have happened in anything like the same kind of numbers” if the clients had used an IFA.