The Jersey Financial Services Commission (JFSC) has today published a report on findings from its third mystery shopping exercise, conducted in 2014, which examined the experience of retail customers seeking investment advice in Jersey.
The purpose of the exercise was to gather evidence and provide insight into industry standards.
Since the JFSC conducted the previous mystery shopping exercise in 2011, new rules have been introduced aimed at raising professional standards and reducing the potential for product bias through the banning of commission payments for advice provided to retail clients.
The mystery shopping exercise was conducted on behalf of the JFSC by Deloitte LLP on 14 different firms.
Director-General, John Harris commented:
“It was pleasing to observe that in all but one case, firms had updated their business model in response to the revised Codes of Practice introduced in January 2014. Most advisors described, at the outset of client meetings, the range of services provided by their firm as well as the charges that would apply, regardless of the solution recommended.
However, there is still room for improvement and we will continue to work with regulated businesses and other stakeholders in raising standards and to monitor whether our policy initiatives are resulting in better outcomes for consumers.”
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