7.3 - Getting Information and Advice

Question 1

Unbiased financial information is available via:

Answer 1

• Organisations such as Citizens Advice

- Government site

Question 2

What does the MAS aim to do?

Answer 2

Improve people’s money management

Question 3

Why did the FSA implement the law that Independent Financial Advisers can no longer receive a commission from the provider of investment products that they sell?

Answer 3

To ensure advisers do not recommend products that offer them higher commission and not the best choice for customers

Question 4

How do packaged bank accounts differ to standard bank accounts?

Answer 4

They make a charge for extra benefits such as insurance policies

Question 5

Ways in which the FCA has introduced more transparency to packaged bank accounts:

Answer 5

When consumers apply for a packaged bank account, the provider must now:

• Check that the consumer would be eligible to make a claim under each policy in the packaged account
• Provide an annual statement, explaining how to claim each of the benefits in the packaged account
• Ensure that the advisers who recommend packaged accounts check whether each policy is suitable