No mis-selling28 Mar 2014 16:19
Excerpt from an FT article which makes this sound far more of a pussy cat...
Will this probe cover sales practices, or mis-selling?
No, it is not a mis-selling probe. It will focus on the current treatment of customers in closed funds.
What action could the regulator take?
The regulator stresses that its probe is “discovery work”, which means it hasn't found problems yet.
If it does find malpractice, it has powers to intervene on exit charges, but it cannot ban them altogether.
Might I be in line for a compensation payout?
It is unlikely. The regulator says that the action it could take might involve paving the way for customers in funds with high exit fees to be switched into lower cost funds.