Pensions - Articles - FairPensions respond to FSA report on conflicts of interest

 FairPensions has responded to today’s publication of a ‘Dear CEO’ letter on conflicts of interest by the FSA. 

 The report finds that ‘many firms had failed to establish an adequate framework for identifying and managing conflicts of interests’ and that ‘in most cases senior management failed to show us they understood and communicated [a] sense of duty to customers.’

 Christine Berry, Head of Policy and Research at FairPensions, said:

 “We welcome the FSA’s focus on conflicts of interest and its clear confirmation that asset managers must always put customers’ interests ahead of their own.

 “The FSA’s findings are damning but sadly not surprising. They demonstrate that the loss of trust in financial services is not the result of popular misconceptions but reflects a real and widespread culture of firms placing their own business interests ahead of the interests of customers.

 “It is in the industry’s own interests to recognise that there is a problem and to commit to genuine change. We very much hope that this will prove to be the start of that process.”