The Financial Conduct Authority (FCA) has warned firms about potential conflicts of interest in operating Best Buy lists and expressed concern over the effects of "poorly planned" platform migrations on customer service and adviser availability.
In a 'Dear CEO' letter sent today, the financial watchdog cautioned that conflicts of interest can "lead to customers receiving poor value for money and/or products and services that are unsuitable for their needs" if they are not identified and managed, with Best Buy lists in particular an area of concern. "Firms operating Best Buy lists must construct them impartially and manage conflicts eg. preference for funds offering discounts over formal and objective criteria, lack of independence of research teams and associated governance. Processes for clear selection, monitoring and deselect...
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