tailieunhanh - Assessing the quality of investment advice in the retail banking sector

The private bond market remains much smaller than that for the government. The outstanding issuance of corporate bonds has risen to almost 10 percent of GDP in 2011, but the market is still very concentrated in short duration rates, with a limited investor base and less diversified issuers. This suggests that the private fixed income market is not a significant long-term financing source for non-financial corporations. Indexation: Around 90 percent of private bonds are linked to the DI rate, resulting in little incentive for active trading. The share of fixed rate bonds still remains very low at about 1 percent. | Financial Services Authority Assessing the quality of investment advice in the retail banking sector A mystery shopping review February 2013 Assessing the quality of investment advice in the retail banking sector Contents 3 I Contents Section One Summary 5 - Our review 5 - Our findings 5 - Our response 6 Section two Key causes of poor advice 7 - Poor risk profiling 7 - Failing to consider customers needs and circumstances 10 - Failing to consider the length of time customers want 11 to hold the investment - Link to our work on inappropriate financial incentives 12 sales targets and performance management - Failing to give customers the correct information 13 - Inappropriate use of investment sales aids 15 - Weaknesses in firms controls 15 Section three Next steps 17 Annex 1 Examples of recent retail banking sector enforcement cases Annex 2 Using mystery shopping - Our approach - .