Halden Financial tells clients it gives independent advice on retirement planning. In practice its advisers recommend only personal pensions from two providers, one of which is owned by Halden's parent company. Why does this breach COBS 6.2B?
COBS 6.2B.11R requires a firm that says it gives independent advice to assess a sufficient range of relevant products that is diverse in type and in issuers, and not limited to products from the firm itself or entities with close links. One product type from two providers, one of them in the same group, fails both limbs. There is no fixed minimum number of providers, suitability of each recommendation does not cure a misleading label, and group ownership is allowed provided the range is not limited to the group.
Assuming suitable recommendations make the 'independent' label acceptable.
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