FOS publishes technical notes on approach to assessing suitability and with-profits bonds – On 4 May 2010, the Financial Ombudsman Service (FOS) published the following technical notes:

• Assessing the suitability of investments. This note sets out how the FOS approaches cases involving disputes about the suitability of an investment where there has been an advised sale. It includes a summary of the regulation applicable to advisors since 29 April 1988 and sets out the issues considered by FOS when assessing suitability, including the customer’s circumstances, and the features of the investment.
  • http://www.financial-ombudsman.org.uk/publications/technical_notes/assessing-suitability-of-investment.htm

• With-profit” bonds. This note sets out the FOS’s approach to issues arising from disputes relating to with-profits bonds (WPBs). It includes summaries, with case studies, of how the FOS will assess the suitability of advised sales of WPBs and of issues arising where a customer was unaware of the existence of a market value adjustment (MVA). The note also explains how the FOS will decide on appropriate redress for successful complainants.
  • http://www.financial-ombudsman.org.uk/publications/technical_notes/with-profits.htm