Firms offering restricted advice are spreading "propaganda" about the apparent difficulties of meeting the Financial Services Authority's (FSA's) new independence rules, according to consultant David Severn, a former head of investment business policy at the FSA.
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"I stand to be corrected, but I cannot recall a single instance where the FSA or its predecessors have taken disciplinary action against a firm on the grounds either that it has falsely claimed independent status, or because a restricted firm has obfuscated the restricted nature of its advice," he said.
"It is to be hoped that the new Financial Conduct Authority will be more proactive and rigorous in monitoring that the status disclosed by a firm accords with the firm's business model."
