I am writing in response to the news that the Financial Conduct Authority has said it is looking at the issue of regulated providers offering unregulated products (FT Adviser, 20 July).
It is about time that something was done about unregulated product sales, so praise to the FCA for looking at this. Let us that something is actually done at the end of this for a change. It is, however, more of a problem that the Financial Ombudsman Service seems to think that unregulated product sales still qualify to be bailed out when they go wrong, and for the regulated side to pick up the tab for the compensation.
The rule should be, if you deal with an unregulated adviser who sells an unregulated product then there is no cover and you’re on your own if it goes wrong.
The rest of a hard-pressed industry should not have to cover for the crooks in this world that are currently exploiting a broken system. Something needs to be done – and quickly.
Dennis Burling
Chartered Financial Planner, DPI Financial Services
Bristol
