View more on these topics

FSA continues its focus on adviser clawback debts

The FSA has warned it will continue to monitor firms with provider clawback debts after finishing its thematic work which resulted in 11 firms being asked to take remedial action.

The FSA announced at Money Marketing Live last Autumn that it was collecting information from providers on adviser firms with large clawback debts. The work has now completed with 11 firms asked to improve their systems and controls and selling practices.

But the FSA has warned it will continue to monitor firms with clawback debts, in particular firms who have debts with more than one provider, have large debts in relation to their size and evidence of legal action being taken against them by product providers.

As part of the project the FSA researched the position of around 150 advisers due either to providers reporting clawback debts owed or because the firms had previously shown financial weakness.

It then visited 15 firms it had the most concern about to assess selling practices in detail- 12 of which had clawback debts and three with a history of financial weakness.

It says it found firms with clawback debts tended to have poor systems and controls and selling practices – for example client’s attitude to risk was adequately established in only 33 per cent of files reviewed.

The FSA’s July newsletter says: “This project is a good example of the increasing use we are making of the data we receive. In particular, data we regularly receive from product providers on commission clawback debts owed to them by financial advisers. We will continue to monitor firms with clawback debts.”


Clear sighted

There is a fad to describe something that is clear as being transparent or, more usually, something that is unclear as not transparent, as in “the charging structure is not transparent” rather than “the charging structure is not clear”. The point about transparency is that you can see through it to something on the other […]

Prestbury offers Brain franchises

Prestbury is setting up a franchised distribution operation called Moneybrain alongside its present appointed representative network.It is offering franchises based on 120 postcode regions, with costs from 5,000 to 25,000.Advisers will trade under the Moneybrain banner and will be ARs of Prestbury, which will retain 20 per cent of income.Prestbury chief executive Lee Birkett says […]

Lock and load

A few years ago, when I was working for a newspaper, one of its senior executives came to see me about writing a story.

New director at Lighthouse

IFA group and pension scheme administrator Lighthouse has hired Richard Last as non-executive director with immediate effect.Last holds a number of other directorships of both public and private companies, including non-executive chairman of Xpertise Group and Knowledge Technology Solutions, both Aim listed. He is particularly experienced in managing and developing IT and service related businesses […]

Is three a crowd?

The pension versus Isa debate has raged on and off for years. Les Cameron, head of technical at Prudential, asks if three’s a crowd.   I think the debate was arguably settled by pensions freedom when the biggest downside of pensions – limited access and poor death benefits – was fundamentally changed. Total access, albeit with […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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