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Major UK advice fraud investigation launched

The UK Financial Conduct Authority has announced it is investigating 29 financial advisory firms for enforcement actions including fraud and misselling.

Responding to a freedom of information request from the UK trade press, the regulator – which was previously under the auspices of the Financial Services Authority until a restructure in 2012 – said the investigation was looking at alleged cases of financial crime, mortgage fraud, suitability of advice and systems and controls issues.

The investigation is also looking into alleged misconduct by mortgage broking professionals.

“It is a small fraction under investigation and the level of adviser regulatory fees - around 10 per cent of all FCA fees - does not seem commensurate with the level of risk posed by the sector in light of these figures,” said the UK Association of Professional Financial Advisers’ Chris Hannant.