Pitfalls of selling financial products

Though the current market for financial services advice or sales retains elements that resemble issues tackled in the 1990s, other compliance questions remain largely unexplored. Adam Samuel examines some of the classic problems.

Adam SamuelBA LLM DipPFS MCISI FCIArb Certs CII (MP&ER) Barrister and Attorney may be contacted atadamsamuel@aol.com.For links to where you can buy the second edition of 'Consumer Financial Services Complaints and Compensation', see www.adamsamuel.com/book.

Over the last 30 years, the sale of investments to retail customers has changed beyond all recognition. In 1990, banks and life assurers provided most of the products, often through direct sales forces and appointed representatives, which were broadly the same thing. They sold by recommending insurance savings and bonds (collective investment schemes built into a life assurance policy). For richer clients, stockbrokers (a term never legally defined) provided discretionary fund management and advisory services.