It may have taken the regulator a long while to catch up, but most in the industry have known for years: annuities do not offer great value. In truth, they haven’t represented good value for a while – and all the competition studies in the world will not fix some of the underlying problems relating […]

The problem with compliance, as Brett Davidson so succinctly puts it, is that “only advisers using charging systems designed 300 years ago by product manufacturers think they have to work for free.” And therein lies the crux of the matter. “Our (THE IFA) whole industry has been set up by product providers to sell products, […]

One of the central objectives of the RDR is to remove the risk of prejudice to consumers arising from conflicts of interest resulting  from remuneration arrangements between investment product providers and advisory firms. On 16 January 2014, the FCA published its final guidance (the Guidance) on inducements and  preventing conflicts of interest, as set out […]

The Financial Ombudsman Service (FOS) has published issue 115 of ombudsman news. The newsletter focuses on annuities and cases involving bad weather-related insurance claims. A copy of the newsletter is available. http://www.financial-ombudsman.org.uk/publications/ombudsman-news/115/issue115.pdf

Capita Financial Managers has provided 1,600 names of investors for group litigation order. Advisers may be thrown an Arch Cru lifeline if Capita Financial Managers, Arch Cru’s former authorised corporate director, is found guilty of causing losses to investors as a result of a fresh £16m court claim being brought on behalf of 550 investors. […]

Breaching the regulator’s Conduct of Business rules does not give rise to a compensation claim if the investment is suitable, a Judge reminded a court in a judgement passed earlier this year. In a judgement passed in February of this year, Lord Justice Rix said advisers may not be liable to pay compensation to customers […]

In 2011 the FSA issued guidance on how firms should establish the risk a customer is willing to take and put in place a suitable investment selection. The report, includes examples of good and bad practice which the regulator says firms can judge themselves against. The regulator says it will take tough action against firms […]

A Court of Appeal ruling could give advisers a reprieve from an offensive tactic commonly used by claims management companies. Breaching the regulator’s Conduct of Business rules does not give rise to a compensation claim if the investment is suitable, a Judge reminded a court in a judgement passed earlier this year. In a judgement […]