FSA threatens action against small brokers over add-ons
Small brokers are not treating their customers fairly and are not even sure whether they are conducting an advised or non-advised sale when selling add-ons according to a report from the regulator.
The study, conducted by the Financial Services Authority (FSA) among 47 brokerages, looked at how small firms offered, explained and confirmed optional extras to their customers in documented form when they had been sold add-ons in addition to their main policy.
The FSA examined the firms' transaction files to decide if, on balance, the customer had received information required by Treating Customers Fairly (TCF) rules and hence sufficient information to make an informed decision on whether to
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