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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.”


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