FSA repeats call for firms to improve platforms due diligence

03 September 2010

The FSA today said adviser firms' approach to platform systems and controls continues to be a " particular area of concern" as AIFA launched a platforms due diligence guide for members. Speaking at a launch event in London, FSA representative Rory Percival said firms needed to ensure they were up to speed on this important issue. "Firms need to look at how their businesses are developing and ensure oversight arrangements are up to date," he said. "When we did our thematic review earlier this year, this was a failing in every firm to a greater or lesser extent." The FSA found evidence of poor practice and unsuitable advice in the review of how advisers use platforms. Findings published in March found firms failed to carry out adequate due diligence or "align their platform with the client base". Percival said adviser firms must make sure they properly monitor their use of platforms and related issues such as managing conflicts of interest. He was speaking as the FSA today issued its first fine to an IFA for platform-related advice failings. Money Wise was fined £19,600 on investment advice it gave to more than 500 customers using platforms and discretionary portfolios. "Today we fined someone for platforms mis-use - our first fine for a firm on platform related issues," he adds. "We hope it will be our last." He went on to reveal no further fines for platform related issues are in the pipeline. The regulator visited 12 IFA firms as part of its investigations but referred just one firm to its enforcement team. Published by IFAOnline