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Banks bear the brunt in latest round of FSA 166-orders
by Sarah Miloudi on Feb 15, 2013 at 14:30
Banks and building societies have taken the brunt as the City regulator issued its latest round of Skilled Persons reports.
Following a 65% spike in the number of orders issued, banks and building societies have been hit with a further eight, handed out by the Financial Services Authority (FSA) over the three months to the end of December.
The orders, which is also know as Section 166, comes after a round of more than 200 'mystery shops' found a quarter of Britain's banks and building societies on were giving unsuitable advice.
The FSA checked up on six high street institutions and found clients' risk profiles was not being adequately considered or assessed, and neither were customers' investment horizons.
While the FSA offers little in terms of detail in its Skilled Person Report updates, it said eight were handed out to banks and building societies over the previous quarter, while investment managers - a sector which has previously hit out about the orders - received none.
In total, 21 Skilled Persons reports were issued, a sharp fall from the previous quarter's 38.
Of the latest round of reports, personal investment firms accounted for four of the 21 orders handed out. Insurers accounted for three and securities and futures firms, were responsible for two.
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