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FCA will do far more mystery shopping after findings of investment advice exercise, says FSA

Feb 15 2013 Joanne Wallen, Compliance Complete

The new conduct regulator will increase significantly its use of mystery shopping exercises following the findings of last year's mystery shop that led to Santander being referred to enforcement. The Financial Services Authority (FSA) this week published the findings of a mystery shopping review it carried out last year on the quality of investment advice given by banks and building societies. The FSA said it was "disappointed" with the results of that review, in which it found advisers at six major banks giving unsuitable advice or failing to collect enough information about customers to ensure advice was suitable or failing adequately to understand customers' appetite for risk. The mystery shopping exercise is the first the regulator has carried out since 2008, when it carried out a similar review into the sales of payment protection insurance (PPI). A spokeswoman for the FSA told Compliance Complete that the new conduct regulator, the Financial Conduct Authority (FCA) would make far

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