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Which? attack on bank advisers

The FSA launching an investigation into bank advice? For years now, the evidence of selling products against targets by bank salespeople, as against selling advice against client needs, has been overwhelming. If the FSA was going to take action or had the resolve to take action it would have happened by now. There is not a lot of point in putting a range of state of the art locks on the stable door as the sound of hooves disappears into the distance. Better to sack the locksmith, I would have thought.

Blair Cann

Will the FSA conduct one of its famous reviews on bank “advice”? There is as much chance of that as seeing Lord Lucan roaring around Canary Wharf on Shergar.

Warwick Tidy

Glad to see Which? proposes to take action on bank investment advisers, this has been going on for too long and the FSA seem to be ignoring the problem or simply does not want to upset the banks as brokers are easier targets. Now how about also challenging them on protection products and mortgage advice. I regularly have to rescue clients who have been sold products which can only be to meet a target imposed on the bank seller.

J Allan Campbell

This practice is still going on right now by one of the biggest banks. “Salespeople” cannot meet targets and in this current climate there are very few who can and are willing to try and take on their employers for fear of losing their jobs or being “performance-managed” – never mind best advice. Who cares what that is?

Anonymous

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Comments

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  1. I was a bank Advisor for several years and as I progressed from AFPC via APFS to Chartered I found the incongrueties between the Bank’s approach and what seemed to me to be right to be unsustainable.

    Bankassurers are under pressure to sell stuff, beyond question. They also tend to operate in their “Zone” where they do understand what they do, but don’t understand what they don’t know and don’t know ( or allowed to care ? ) what the impact will be on their customers of what they don’t know, and consequently have not done anything about . I do not name the bank because I think they are all pretty similar.

    But let us not kid ourselves; there will be IFAs who passed FPC 20 years ago and work in their own comfort zones who don’t know what they don’t know either, and who’s clients could be as badly neglected in these areas as those of the bankassurers.

    Those who do the Diploma exams and pass will hopefully become aware of the wider issues. Those who do them and fail should at least get an understanding of that which they don’t know and be able to refer clients who have problems in those areas.

    How can IFAs who don’t know what they don’t know even claim that they should be allowed to advise on a client’s life savings without supervision ?

    In my opinion anyone who cannot or has not passed the Diploma should be allowed to call themseves an Independant Financial ADVISOR. They may be able to work in a comfort zone and flog what they understand, but in my book that leaves them little better than a Bankassurance salesman, but lacking the supervision that banks exercise over their salespeople.

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