View more on these topics

AWD widens product literature checks

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.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. 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.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com