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Is Coutts’ suitability warning the tip of the iceberg?
by Danielle Levy on Jun 16, 2014 at 14:35
‘That may determine the way they follow suit. I do think there are a number of organisations that are not as far down this path as they should be and this, along with a continued focus from the FCA, should mean they continue to have this as a high priority for them to resolve.’
Hupe is still speaking to organisations that need to do more in terms of reviewing legacy positions and putting in place processes and controls for suitability.
‘I have not seen anything on this scale, and I think Coutts is taking an admirable approach to dealing with this, as long as they can follow through, rectify and put processes in place going forward,’ he said.
He does not expect to see another regulator-led thematic review on suitability but anticipates further fines and Section 166s. ‘I think the regulator wants to keep this top of the agenda and at the forefront of wealth managers’ minds. One of their roles is about protecting the end-investor. This is as crucial to that as can be.’
Regulatory consultant Mike Browning adds the industry must be aware of the application of hindsight. He does expect there will be further thematic and supervisory reviews, plus more section 166s and enforcement to come.
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