ABSTRACT

An implicit distinction between product sales and financial planning advice is evident, causing constant anomalies in the regulatory system. People themselves vary enormously; both in their exposure to financial advice and decision-making and in their capacity to understand what are offered. At the heart of financial services lies the interaction between the investor and the seller or adviser. The chapter is concerned with mis-selling has given rise to effective and adequate training and competence as a primary regulatory objective. The position of the seller or adviser is equally diverse. The Personal Investment Authority (PIA) proposed that direct sellers should be required to take part I of the Financial Planning Certificate before going on the road and to complete parts II and III within three years. The PIA evidently intended to keep up the pressure and proposed adding to its capacity for fines by requiring noncompliant firms to advertise their failings in the press in a designated form in appropriate cases.