If there was any need to highlight the regulatory challenge faced by wealth managers, the FSA ‘Dear CEO' letters have made the issue strikingly clear.
As the letters showed, the industry has yet to reach the required standards to capture, monitor and prove suitability. Within the industry, there are plenty of forward-looking firms and managers who recognise regulatory compliance can have a positive outcome in terms of improving business practices and delivering enhanced outcomes for investors. But no-one denies the costs of compliance can potentially undermine a firm’s long-term sustainability and destabilise growth strategies. Much of the new regulation is intended to protect investors, but there is plenty of evidence to suggest...
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