The Financial Conduct Authority (FCA) is investigating 29 financial adviser firms or individuals for enforcement action ranging from fraud to misselling.
According to FCA, as of 13 May 2013, there are two mortgage broker firms or individuals under investigation and also one firm under investigation that sells both mortgages and financial advice.
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The enforcement actions link with financial crime, mortgage fraud, misselling and suitability of advice, treating customers fairly as well as systems and controls issues.
On 23 May 2013, JPMorgan was fined GBP3.08 million by FCA for being unable to prove it was giving clients the right advice.
Advisors are also being investigated for breaches of anti-bribery and corruptions controls, competence or integrity issues, and complaints handling, undertaking regulated activities without permission and promoting Ucis.
On 18 Apr 2013, the FCA warned that execution-only services could be subject to advice rules if customers believe they have received advice.
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By GlobalDataThere are approximately 5,000 advice firms, or 14,000 firms including ARs, and around 20,500 financial advisers.
On 12 April 2013, FCA warned four companies about not being authorised to conduct regulated activities.
Apfa policy director Chris Hannant said: "It is a small fraction under investigation and the level of adviser regulatory fees, around 10% of all FCA fees, does not seem commensurate with the level of risk posed by the sector in light of these figures."
