This week's personal finance news
News
26/07/2010 18:33:51
Wealth management groups subject to new rules
Wealth management service providers such as banks and financial advisers are to be subject to new rules following the Financial Services Act 2010, which grants more powers to industry regulator the Financial Services Authority (FSA).
The rules will aim to protect consumers by allowing the FSA to suspend the work of firms or individuals that do not maintain professional standards.
Financial penalties may also be imposed for wealth management providers who offer services they are not officially approved to carry out, such as granting loans or mortgages.
Short-selling is also a focus of the tougher legislation, which makes provision for fines to be levied against those who breach industry rules.
The act came into force in April this year, addressing issues such as disclosure and requests for relevant information - for example, credit ratings - as well as consumer protection measures and a scheme to compensate victims of financial service mismanagement.
