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Many IFAs may be in breach of rules on performance data use

IFAs are breaching rules on performance data despite new FSA rules coming into force this month, according to O&M Systems.

O&M, the financial services systems provider says the majority of IFAs quoting performance data to their clients are likely to be in breach of FSA rules due to ignorance to the changes in force.

The new rules are designed to enforce fair and clear data. Risks of misleading can be minimised by using the FSA approved table format. Selective time periods, or “cherry-picking” will no longer be able to be used when displaying performance data. It is no longer permitted to use performance periods for less than one year and percentage growth rates can only be shown to one decimal place.

O&M director Graham Miller says: “IFAs without systems have traditionally taken paper-based information from magazines and provider bulletins and presented this to clients in a table within their suitability letter. They need to change the format of the data they supply to clients immediately or risk breaching the FSA rules.”


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