FSA probes firms using model portfolios, DFMs and DIFs

The FSA is to scrutinise the quality of advice given by firms who operate a 'centralised investment proposition' ahead of the implementation of the Retail Distribution Review (RDR).

Speaking at a Personal Finance Society (PFS) event, FSA head of investments department Linda Woodall said this would involve assessing businesses which use model portfolios, refer clients to discretionary managers or have distributor influenced funds (DIFs). Woodall said: "We want to know whether clients are receiving the associated advice to a standard that meets current requirements but also with a view to the position post-RDR." Woodall also revealed the regulator is to look at the quality of advice when firms recommend clients to invest into single premium investment and pension p...