Pitfalls of selling financial products

Though the current market for financialservices advice or sales retains elements that resemble issues tackled in the1990s, other compliance questions remain largely unexplored. Adam Samuelexamines some of the classic problems.

Adam SamuelBALLM DipPFS MCISI FCIArb Certs CII (MP&ER) Barrister and Attorney may becontacted [email protected] links to where you can buy thesecond edition of ‘Consumer Financial Services Complaints and Compensation’,see www.adamsamuel.com/book.

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