Financial News

IFAs Should Listen More To Their Clients

Financial advisers should take more of a personal interest in their customers rather than just tick the boxes to pass compliance tests, Financial Conduct Authority (FCA) technical expert Rory Percival argues.

He considers IFAs are too concerned about making a sale and writing up reports that do not fail compliance.

This leads to boiler-plate form filling and pushing customers towards convenient solutions rather than finding out their underlying financial objectives and drawing up a plan to help them.

“If you have template reports it’s a sign that you are not considering the needs of your clients,” Percival said.

Best interests ignored

“Standard reports with the same information repeated for lots of clients means something has gone wrong.

“Then I start to look for retro-fitting, which is what I call editing a report to match a product rather than looking around the market for something that suits the client.

“Too many advisers are relying on the same product for their clients, which is convenient but not in their best interests.”

Percival explained the best defence against complaints and compliance checks was listening to clients rather than trying to shove them into a solution that doesn’t fit.

Warnings about bogus advisers – Worldwide

Here are the latest rogue financial firm warnings on the International Organisation of Securities Commissions web site:

  • Interequity Inc – Austria
  • OptionsXO – Austria
  • Safe Capital Asset Management AG – Switzerland
  • ArtNews SA – Poland
  • LF-Trust Europe – Luxembourg
  • Glenwood-Securities – Switzerland

Warnings about bogus advisers – UK

Here are the latest bogus financial advisers listed on the Financial Conduct Authority (FCA) web site:

  • FTG GmbH aka Germany Financel Ltd
  • Eclips Property Bond Limited
  • Ownbrix Client Services Limited/ Ownbrix International Ltd t/a Ownbrix
  • Douglas Cooper Associates
  • The Quick Loan Shop (Clone web site)

Dealing with an unregulated firm

If you buy shares, save money or invest with an unregulated firm, you lose any protection offered by the Financial Ombudsman and the Financial Services Compensation Scheme. Broadly, you have no independent place to complain if the deal goes wrong and are unlikely to win any compensation.

Checking if a firm is regulated

Go to the Financial Services Register to check if a firm is regulated in the UK.

Reporting a suspected bogus adviser

Find out how to report unauthorised advisers on the FCA web site

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