In the shadows: Are unregulated 'advisers' making easy prey of consumers post-RDR?

UNREGULATED

Carmen Reichman
clock

The advice community has flagged concerns the ‘shadow industry' of unregulated advisers is preying on consumers post-RDR. Carmen Reichman investigates…

Broadly, it is accepted that unregulated advice comes in two forms - from those ‘who don't abide by the rules' and those who ‘purport to be regulated but aren't'. Both categories are a growing concern to the regulated community but it is the latter that often draws in unassuming consumers and muddies transparency about products. It is said these ‘advisers' (who pretend to be regulated) lure people into investing in esoteric products for which they promise larger-than-average returns without properly testing their suitability. Regulated advisers pay levies to ensure consumers have a...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA urges principal firms to check PII cover

FCA urges principal firms to check PII cover

Regulator finds 10% of sampled firms may not have adequate cover in place

Isabel Baxter
clock 28 February 2025 • 1 min read
FCA to undertake MPS Consumer Duty review

FCA to undertake MPS Consumer Duty review

Regulator recognises the sector has been ‘growing at pace’

Isabel Baxter
clock 26 February 2025 • 2 min read
FCA ongoing services wish lists: 'Advice shouldn't be like a car tax reminder'

FCA ongoing services wish lists: 'Advice shouldn't be like a car tax reminder'

FCA urged to adopt a 'more principled and realistic approach'

Jen Frost
clock 25 February 2025 • 3 min read