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FSA warns wealth managers over risk levels

In its second note of caution to the wealth management sector in little over two months, the UK's financial regulator raises fresh concerns about risk controls

The UK Financial Services Authority today published an open letter to wealth managers warning that four out of five investors could be exposed to an unsuitable level of risk - its second note of caution to the indusrty in little over two months.

The FSA reviewed 16 wealth management firms and 170 client files, and found that 79% of files were at high risk of unsuitability or their suitability could not be determined.

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