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FSA fines Moneywise £20,000 over investment advice failings
Bath-based financial adviser Moneywise has been fined £19,600 by the Financial Services Authority for failing to have robust compliance arrangements in place for investment advice given to customers using platforms and discretionary portfolios.
Platforms are online services used by intermediaries - and sometimes consumers directly - to view and administer their investment portfolios.
The FSA found that Moneywise did not ensure its compliance arrangements evolved as the business grew. As such, the firm did not have robust arrangements for training advisers and ensuring suitability reports were clear, fair and not misleading.
Moneywise recommended platform-based investment to 519 customers but failed to ensure its advisers explained their rationale clearly to investors.
The FSA also found that Moneywise had not made it clear to customers that some of the underlying investments contained unregulated collective investment schemes and the associated risks that needed to be understood prior to investment.
Margaret Cole, the FSA’s director of enforcement and financial crime, said: “As Moneywise’s business model evolved to include wrap platforms, sadly its compliance function and elements of its staff training did not keep pace.
“Firms that move to platform-based investment models need to ensure their advisers are properly trained and understand the nature of all of the underlying investments. They must also make sure they are properly supported by adequate compliance arrangements.
“It’s imperative that customers have a full understanding of where and how their money is being invested.”
Moneywise wealth management director Richard Armstrong said: “We accept that there were some compliance deficiencies and have taken action.”
Moneywise has appointed an external compliance consultant, made changes recommended by the consultant, and appointed a new compliance officer at board level.
The FSA did not find any evidence that customers had suffered any financial detriment.
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