chapter  29
15 Pages

The scale and scope of fi nancial mis-selling

ByJohn K. Ashton

As an introduction to this section considering fi nancial services malpractice, this chapter assesses the scale, scope and characteristics of the phenomenon of mis-selling. Financial mis-selling is a widely used term attributed to many meanings including: aggressive, ignorant or incompetent sales tactics; a failure to appropriately advise customers; deliberate strategies to sell fi nancial services that customers do not need; all circumstances where a customer is fi nancially disadvantaged due to reasons they were neither aware of, nor desired (Black and Nobels 1998 ). This examination is undertaken through the content analysis of all the fi nal notices issued and reported by the UK fi nancial regulator (the Financial Services Authority, hereafter the FSA) to fi nancial organizations for mis-selling over the ten-year period, 2002-11.