Not all ratings are created equal. It is advisers’ responsibility to check their sources and make sure grading systems are reliable.
The Financial Conduct Authority (FCA) has recently re-highlighted the need for advisers to understand the tools they use. Speaking at a conference in September, FCA director Debbie Gupta urged advisers to ‘consider the limitations of the tools you use and the outputs they give’. She added: ‘It’s important that due diligence is undertaken to understand the limitations of these tools.’ …
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(Published 5 December 2019)