The snappily-named ‘Exemptions from restrictions on the promotion of non-mainstream pooled investments’ rules say that, if a ‘high net worth’ client signs a declaration to say they earn more than £100k, have more than £250k to invest and are of sound mind, we can effectively flog them the highest of high risk stuff. Such as non-existent holiday developments in obscure tropical locations. We’ve always avoided this like the proverbial. High risk stuff is obound to bite you on the bottom eventually; and those ‘high net worth’ clients are more likely and able to take their advisers to the cleaners. It’s still, alas, a much abused loophole which, hopefully, the regulator will close. Although, once again, don’t hold your breath.
“Letter of authority: Why now is the right time for change”
This may sound like a non-issue from outside the world-of-financial-advice bubble. It is the bain, however, of the daily working lives of many of us, particularly of those paid by we advisers to do the dirty work of dealing with the many providers with whom we have to work.