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Pressure is mounting for the FSA to investigate bank advice

Advisers have backed Aifa’s call for an FSA investigation into bank advice following an increase in complaints to the Financial Ombudsman Service over unsuitable bank advice to elderly customers.

Last week, the FOS revealed it has received 1,809 investment complaints from people aged 65 or older between April and July this year.

Aifa director general Chris Cummings said the news should prompt an FSA investigation into bank advice but the regulator would not commit to undertaking this.

Sesame sales and marketing director Steve Young says: “Chris Cummings is right. I would hope this is something that the FSA uses to inform the supervision of the banks. I would be disappointed if the FSA did not use it. This is yet another confirm- ation that if people want good quality advice they should go to an IFA, not a bank.”

Calculis director Alex Pegley believes there should be a probe but adds: “The cynic in me says the reason that the FSA does not want to investigate is because it is staffed by former bancassurers. The FSA is very wary of the IFA community because they do not understand us.”

P3 Wealth Management managing director Frank O’Donnell says: “The FSA must investigate this under treating customers fairly. They preach TCF to us and call us in for meetings about TCF, so there is no way banks should get away with it.”

Last week the FSA told Money Marketing: “We speak to the FOS on a regular basis and where we come across complaints that warrant further investigation,we will factor that into our supervision of firms.”

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  1. Pressure is mounting for the FSA to investigate bank advice
    Given the FSA’s boundless enthusiasm for perniciously hounding IFA’s to the brink of extinction with one hindsight review after another, it does rather stink to high heaven that it allows the banks, year after year, to get away with persistent, widespread and brazenly BAD selling practices. The FSA is a biased regulator in the pockets of the banks. Whatever the banks get up to, the FSA just looks the other way. The fact that it continues to deny what is common knowledge to pretty well everyone is nothing better than an insult to our intelligence, not to mention a shameful abrogation of its statutory responsibilities.

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