Best funds probed

BROKERS and investment supermarkets are being probed over the funds they offer without financial advice.

Many of these companies have lists on websites and in their marketing material of the ‘best’ investments to buy.

Concerns are mounting that savers are being f logged certain investments by firms who are getting hidden kickbacks in return.

And there are fears naive savers could be lured into unsuitable funds, as they attempt to cut out the high cost of advice. The City regultor, the Financial Conduct Authority, will scrutinise these lists. Increasing numbers of savers are shopping for investments directly from fund supermarkets and brokers, rather than paying hefty fees to financial advisers.

A spokesman for the FCA says: ‘ As part of our new approach, we want to take an early look at these distribution channels to ensure that consumers are getting the right outcomes and provide clarification for firms.’