FCA finds restricted advisers operating under IFA banner

The Financial Conduct Authority (FCA) says firms are mostly adapting well to changes introduced following the Retail Distribution Review (RDR), but it has uncovered some problems, including firms describing themselves as independent but in fact choosing products from a limited number of providers or products.

The findings come in an early review of how advisory firms have implemented some of the core aspects of the RDR months after its implementation. It found that the majority of firms have made progress and there was a willingness to adapt to the new rules. However, as well as finding some firms incorrectly describing themselves as independent, it said it was also concerned by some firms providing charges in percentages, rather than cash terms, which some consumers found confusing. It also said some firms were not clearly explaining what service customers will receive for ongoing fees...