The FSA is investigating the quality of investment advice involving model portfolios, discretionary fund managers and distributor influenced funds.
The regulator is carrying out supervisory work into advice received as part of what it is calling ‘centralised investment propositions’.
Speaking at a Personal Finance Society RDR seminar in London yesterday FSA head of investment intermediaries Linda Woodall said: “We are undertaking a targeted piece of work on centralised investment propositions to understand current practices in this area.
“Centralised investment propositions are those where a firm operates a standard approach to advising on investments using portfolio advice services, usually involving model portfolios, referring clients to discretionary managers, and DIFs. We want to know whether clients are receiving the associated advice to a standard that meets current requirements but also with a view to the position post-RDR.”
Woodall added the FSA is also examining the quality of advice when clients are recommended to invest into single premium investment and pension products.