A third of financial advisers are breaking City watchdog rules designed to protect consumers, a survey by consumer organisation Which? showed on Thursday.

Some 35 percent of almost 60 advisers visited by mystery shopper researchers from Which? failed to provided them with required documents on costs.

Rules introduced by the Financial Services Authority (FSA) last year require all financial advisers to give clients two Keyfacts documents on costs and services before giving advice.

More than 80 percent did not explain the purpose of the cost document and around 30 percent also failed to provide Keyfacts on services.

The documents stipulate how a client will pay for the advice by way of commission or a fee and whether the firm is restricted on the products it can offer.

Independent financial advisers (IFAs) are able to advise on all products on the market, while tied advisers can only offer those of certain insurance companies and investments houses.

The study also found 37 percent did not conduct an adequate assessment to ascertain financial needs and risk attitude.

Only half the advisers visited for pensions advice properly assessed attitudes to investment risk, while 76 percent asked for protection advice failed to tell researchers of the risks associated with income protection should income fall.

A third of financial advisers are breaking City watchdog rules designed to protect consumers, a survey by consumer organisation Which? showed on Thursday.

Some 35 percent of almost 60 advisers visited by mystery shopper researchers from Which? failed to provided them with required documents on costs.

Rules introduced by the Financial Services Authority (FSA) last year require all financial advisers to give clients two Keyfacts documents on costs and services before giving advice.

More than 80 percent did not explain the purpose of the cost document and around 30 percent also failed to provide Keyfacts on services.

The documents stipulate how a client will pay for the advice by way of commission or a fee and whether the firm is restricted on the products it can offer.

Independent financial advisers (IFAs) are able to advise on all products on the market, while tied advisers can only offer those of certain insurance companies and investments houses.

The study also found 37 percent did not conduct an adequate assessment to ascertain financial needs and risk attitude.

Only half the advisers visited for pensions advice properly assessed attitudes to investment risk, while 76 percent asked for protection advice failed to tell researchers of the risks associated with income protection should income fall.

A third of financial advisers are breaking City watchdog rules designed to protect consumers, a survey by consumer organisation Which? showed on Thursday.

Some 35 percent of almost 60 advisers visited by mystery shopper researchers from Which? failed to provided them with required documents on costs.

Rules introduced by the Financial Services Authority (FSA) last year require all financial advisers to give clients two Keyfacts documents on costs and services before giving advice.

More than 80 percent did not explain the purpose of the cost document and around 30 percent also failed to provide Keyfacts on services.

The documents stipulate how a client will pay for the advice by way of commission or a fee and whether the firm is restricted on the products it can offer.

Independent financial advisers (IFAs) are able to advise on all products on the market, while tied advisers can only offer those of certain insurance companies and investments houses.

The study also found 37 percent did not conduct an adequate assessment to ascertain financial needs and risk attitude.

Only half the advisers visited for pensions advice properly assessed attitudes to investment risk, while 76 percent asked for protection advice failed to tell researchers of the risks associated with income protection should income fall.

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