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Ambulance chasers have turned their attention towards financial advisors and the mis-selling of investment products. Clear evidence of this can be seen in a prominent advert taken out in the Wednesday 27th July's edition of the Daily Mail.

The FSA's increasing attention towards weaknesses in advice, risk profiling and investment suitability given by wealth managers and independent financial advisors is no doubt a significant incentive for one firm. They have invested in a highly visible advertisement in the Daily Mail, a national daily newspaper aimed at a middle class, mass affluent readership - exactly the same audience likely to have sought advice from financial advisors and wealth managers.

"Ambulance chasers are looking at the rich pickings to be gained by contesting the advice given by financial advisors." believes David Roberts, Amatica's strategy and marketing director. "In comparison with their rewards from challenging the mis-selling of PPI, wealth management offers ambulance chasers rewards they've previously only dreamt of. There's no doubt they've been encouraged by the FSA's high profile stance over the failings and weaknesses of some so-called professional advisors".

"Wealth managers will need to raise their game." predicts David Roberts. "Until this latest development, the main concern of the wealth manager and financial advisors was to meet the FSA's requirements, satisfy the demands of an Arrow inspection and avoid the costs of a Section 166 Notice and subsequent fine. The entry of ambulance chasers into the arena increases the risks and costs of damages significantly. It could easily become a feeding frenzy."

Amatica's solution for risk profiling and establishing suitability, HARBOUR, is an online solution that generates a PDF suitability report that illustrates risk appetite, investment conflicts, and comparisons. Other aspects of the system include fact find, Know Your Customer (KYC) as well as other on-boarding facilities associated with taking on clients investments.

Thus far, ambulance chasers are unregulated. They are accused of using techniques that encourage people to make spurious claims and inflate claims for damages. Consumer groups and the Financial Ombudsman are applying pressure on government to regulate the activities of such firms.

© Amatica 29/07/2011