The FSA says paraplanners should be challenging advisers over suitability letters to ensure client needs are being met.
Speaking at the Institute of Financial Planning paraplanner conference this week, Chris Hewitt from the FSA’s investment intermediaries department, said paraplanners should be looking to examine what the objectives of clients are with regard to centralised investment propositions.
He said: “When you see generic statements on file, you should challenge the adviser to identify what is driving the objective for the client.“
Hewitt said when making switches, paraplanners should question the validity of the switch.
He said: “Paraplanners should question whether there is a valid justification in light of the client’s specific needs and objectives and the potential additional costs involved.”