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Campaign seeks FSA meaning of misselling

Pressure is mounting on the FSA after Aifa chairman Lord David Hunt joined the calls led by Ron Sandler for the regulator to publish a definition of misselling.

Hunt called Sandler&#39s recommendation a welcome move, saying that for far too long what constitutes misselling has been defined in hindsight by the FSA and advisers are running scared as a result.

In an attempt to open the debate over such a definition, Sheffield IFA Geoff Kangley has come up with his own version of how misselling should be defined.

Kangley&#39s approach is to outline any circumstances where misselling could occur so advisers would be able to give adv-ice with the full certainty that they are not running the risk of being accused of crossing those boundaries.

In addition to his definition, he has created an investor checklist which outlines various issues an investor should be aware of before buying any financial products. An IFA would be obliged to go through the checklist and get a potential client to sign it before making any recommendations.

Hunt says: “Ron Sandler&#39s request that the FSA define what they mean by misselling is especially welcome. The adviser has for some years been running scared that misselling means exactly what a regulator may, with the benefit of hindsight, decide it means.”

Kangley says: “The creation of the definition of misselling enables IFAs to ensure the investor is empowered to make informed decisions.”

FSA spokesman Rob McIvor says: “It is something that we will give thought to. I would not want to speculate one way or the other.”

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