Wealth management firms 'should deliver better services'

Many wealth management companies offering with-profits funds fail to provide adequate information and support to clients, according to one industry watchdog.

Private wealth management advisers might recommend with-profits funds to customers seeking long-term capital growth.

However, a recent review by the Financial Services Authority (FSA) found poor fund governance means investments may not be managed in the best interests of policyholders.

Individuals choosing the funds for private wealth management might also lack information on the product, hindering their ability to make financial choices, the report found.

Ken Hogg, FSA insurance sector director, noted firms offering the funds had made some progress, but insisted there was ’still more work to be done’.

He highlighted the importance of clear dialogue with policyholders regarding the functioning of the product and its likely returns.

A response to the report by the Financial Services Consumer Panel said it welcomed the FSA investigation and encouraged the body to act on its findings to provide more effective supervision of the rules. ADNFCR-2318-ID-19865737-ADNFCR