7.2 Investment advice in practice
This activity looks at investment advice in practice and how it may not be as good as the templates seem to suggest.
Activity 14 Examples of poor investment advice
It failed to correctly identify customer needs and their attitude to risk
It sold the customer email list to other organisations
It failed to complete any type of investor paperwork
It failed to check if products they sold to clients were suitable over time
The correct answers are a and d.
It failed to correctly identify customer needs and their attitude to risk. It also failed to check, as it had promised, that products they had sold to clients continued to be suitable over time. Notice how the press release mentions a loss of trust on behalf of customers.
This is not a one-off. See the FCA list of press releases for an insight into the extent of mis-selling.