High Street bank Santander UK has been fined nearly £12.4m by the UK financial watchdog over failures in investment advice in its branches.
Among the failures identified by the FCA were:
- Advisers failed to consider how much risk customers were willing to take with their investments
- A failure to ensure that customers were given clear advice
- Ongoing checks to ensure that investments were suitable were not carried out for Premium Investment customers
- A failure to make sure new advisers were properly trained before being allowed to give investment advice
- Poor advice was not always picked up owing to poor monitoring
With examples like this, it’s no wonder people have a distrust of the financial services industry. I wonder if similar investigations have been conducted in Canada of the United States by regulators? I’ve personally witnessed poor investment advice while attending a meeting with my mother’s bank and the CBC recently uncovered several issues of their own with a hidden camera investigation. If you are meeting with a financial advisor at a bank, I would recommend that you think of them more as a sales person than an independent professional that has your best interests in mind.