The Financial Services Authority (FSA) has recommended new qualification rules for complex products, Citywire reports. The FSA, which will restrict advisers with the minimum qualification requirement to sell only mainstream products, will publish a list of products it considers unsuitable for mainstream investors, which will include life settlements.
The FSA has considered extending the RU64 rule, which imposed a requirement on advisers to benchmark pensions against the stakeholder option, to other products. It has also suggested preventing non-advised sales around certain complex products, including pension transfers or distributor-influenced funds and only allowing professional clients to buy complex products on a non-advised basis.
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