AN undercover investigation of Jersey investment firms has concluded that advisers need to be clear about the full extent of a client’s debts before making recommendations.

The inquiry, carried out for the Jersey Financial Services Commission, adds that recommendations and product details should be set out in writing before a client makes a commitment.

The research carried out by Deloitte & Touche and GfK Mystery Shopping approached 13 Jersey investment advisers between November and January and asked for advice about investing a lump sum of either £8,000 or £100,000. They found that those with £8,000 had some difficulty getting advice, in comparison to those with more money to invest.

John Harris, director general of the JFSC, said: ‘We were a little surprised at the difficulty that some of those with £8,000 to invest had in obtaining advice. We accept that such a sum will generate a limited amount of commission for an adviser, but it is a good deal of money all the same.’