View more on these topics

FSA to monitor platform conflicts of interest

The FSA is scrutinising how firms manage conflict of interest issues where advisers own a stake in the platform they use.

The regulator raised the need for firms to disclose potential conflict of interests after it fined Moneywise IFA £19,600 for investment advice failings in September.

The final notice issued to Moneywise IFA noted the firm had failed to manage conflicts of interest effectively as non-executive director Malcolm Coury had also set up Ascentric, the platform Moneywise was recommending to its clients.

In its consultation paper on the platform market published today the FSA has reiterated its concerns over conflict of interest issues, particularly where advisers own a stake in their chosen platform.

The FSA says: “In line with the position set out under the RDR, we recognise that there are a number of valid concerns with regard to ownership issues of advisers.

“We expect firms to take steps to manage this conflict and this will be an area we will continue to monitor closely as part of the supervisory work undertaken in the run-up to and post-implementation of the RDR.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    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