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Why regulated advice is so important

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21/09/2020

liberty sipp cases fca

When it comes to investing money, many people turn to an IFA for advice or guidance especially if they have limited experience or knowledge in investing. People taking advice from unregulated advisers is becoming an increasing issue, and with scams on the rise fraudsters are taking advantage of people’s vulnerability during these unprecedented times. Therefore, remaining vigilant has never been so important.

Financial markets need to be honest, fair and effective so that consumers get a fair deal. To qualify as regulated, a firm needs to be a registered legal body. This means the financial advice company has capital adequacy, advisors with relevant qualifications to practice, and controls and systems enabling them to look after clients. This gives you peace of mind that the company won’t disappear along with your money.

The FCA

Regulated firms are obliged to follow the Financial Conduct Authority’s rules that demand financial advisers give advice that is fair, suitable and appropriate for a client’s needs. This comes under the FCA’s ‘Treating Customers Fairly’ drive. The Financial Conduct Authority is the conduct regulator for 59,000 financial services firms and financial markets in the UK and the prudential supervisor for 49,000 firms, setting specific standards for 19,000 firms.

The FCA is an independent public body funded entirely by the firms they regulate, by charging them fees helping them to remain impartial.

Right to Complain

By using a regulated financial advisor, you will have the rights and ability to complain officially if you have lost out financially over having been given poor advice or if you’ve been mis-sold a financial product or package.

Suitably regulated financial advisors have a thorough complaints procedure and if you’re not satisfied with their response you may contact the Financial Ombudsman (independent adjudicator) who will consider your complaint further.

The FSCS

FSCS is independent, free and funded by the financial services industry. They were set up by parliament to pay back money to eligible people when their financial firm fails. When it became clear that a large proportion of the UK public were offered the opportunity to invest with SIPPs, the FSCS set aside millions of pounds to pay compensation to those who were mis-sold.

The FSCS provides protection when firms fail – reassuring people in a crisis and enabling people to buy regulated financial products. The FSCS recovers as much as possible from failed firms to offset the costs of compensation which is funded by the industry.

If you are mis-sold or scammed and believe you should be awarded financial redress, then there are two ways in which you can claim to the FSCS: direct with FSCS for free, or through third party solicitors, like APJ Solicitors who’ll charge a fee to handle your claim.

 

If you wish to speak to one of our specialists regarding your claim, get in touch today, email us at enquiries@apjsolicitors.co.uk

APJ Solicitors are authorised and regulated by the Solicitors Regulation Authority under SRA 629443. ICO number APJ ZA188164.