The FSA has been carrying out covert monitoring of structured product advice and has asked a number of structured product providers to keep an eye on IFA firms, as part of a discreet review of the controversial sector.
The regulator has written to organisations in the last few months asking them to monitor the IFA firms who introduce business to them and conduct due diligence of the firm’s business model, client type and future plans. A shadow or stealth monitoring process?
The secretive ‘snooping’ by the watchdog has angered a number of financial advisers and providers, many of whom have privately condemned the tactics.
Arthur Childs, managing director of Surrey-based Arch financial planning and a CEI Client, said: “You cannot really use product providers to be the tools of the regulator. It is pretty clear what we have to do as IFAs and financial planners.
“We produced a guide to structured products so our advisers are singing from the same hymn sheet.
“I would be a bit annoyed if I found one of the providers was giving us the third degree over whether we were suitable or not. It seems a strange way of dealing with it. The FSA has done this in the past with people selling life bonds. It is a bit crazy”
Who will be next to be asked to monitor IFAs in the psuedo-regulator army recruited by the FSA?
