FSA criticizes banks' wealth management policies

13 March 2013

Major British banks are still failing when it comes to offering top-class service to their customers.

That is according to Martin Wheatley, managing director at the Financial Services Authority (FSA), who believes leading financiers are still not in-tune with the type of advice consumers need when they are dealing with potentially-risky investments.

During a speech delivered yesterday (12 March) at the Chartered Institute for Securities and Investment, Mr Wheatley revealed the FSA has a number of significant concerns about the suitability of investment portfolios on offer from institutions.

Indeed, the official described the preliminary findings of the regulator's latest review into the wealth management arms of six retail banks in the UK as "worrying", as they offer proof that the firms don't "get" the hang of effective service.

"There is a disparity there that suggests some compliance departments are not sufficiently switched on to concerns over suitability," Mr Wheatley noted.

By Tony Aynsley

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