Advisers may be forced to change the wording of their client agreements after the Financial Services Authority (FSA) challenged the terms of business of the On-Line Partnership under the unfair terms in consumer contracts legislation.
The regulator has told the network to drop its previous wording which required clients to sign the following: ‘I confirm that I have received, read and understood this agreement and agree to the terms set out within’. The FSA said it was an unfair term as it could bind consumers to terms they may not understand.
The FSA states that the term is ‘contrary to the requirement of good faith, it causes a significant imbalance in the parties’ rights and obligations under the contract, to the detriment of the consumer.’
See full Article.
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