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Vedanta Hedging warn SMEs against obtaining unauthorised FX Hedging advice

Abhishek Sachdev, MD of FCA Authorised Derivative advisers, Vedanta Hedging, was interviewed by Risk magazine.

Mr Sachdev was asked about Currency brokers offering unsolicited and unauthorised advice to SMEs for FX hedging.

Unlicensed advice

It’s not just the structures themselves that consultants raise concerns about – it’s the way they are sold. Brokers need to be licensed by a financial regulator to provide financial advice, but Abhishek Sachdev, managing director at treasury and risk management advisory firm Vedanta Hedging, says some unlicensed firms have sought to persuade customers to use more complex products.

“I have had two clients that were given advice when the brokers weren’t allowed to. One time was quite explicit, where a currency broker was offering the client a simple spot transaction, but out of the blue one day another contact within the broker firm rang up the client and said ‘We can offer you more interesting products that will make you more money’. That constitutes giving advice. There’s nothing wrong with forex derivatives, but they should not be advising clients to do them,” says Sachdev.

 

http://www.risk.net/risk-magazine/feature/2373593/consultants-fear-mis-selling-as-forex-brokers-get-funky

Nadia Patel

Nadia has a degree in Business Management and a Diploma for Financial Advisers (Level 4). She has ten years of experience in financial services. This includes FSA regulated adviser roles in HSBC, Halifax and Nationwide. As senior manager at Vedanta Nadia is responsible for managing the office, client contact and marketing for the business.

Nadia Patel

Nadia has a degree in Business Management and a Diploma for Financial Advisers (Level 4). She has ten years of experience in financial services. This includes FSA regulated adviser roles in HSBC, Halifax and Nationwide. As senior manager at Vedanta Nadia is responsible for managing the office, client contact and marketing for the business.