The FSA has publicly censured national IFA network Park Row Associates Limited for failing to ensure its sales were suitable and secured customer redress estimated at between £5 million and £7.8 million.

The regulator has also fined Peter Sprung, the firm’s former chief executive, £49,000 and has withdrawn his approval to perform a controlled function at Park Row. He has also undertaken not to perform a significant function at any firm for five years.

Between January 2007 and January 2009, a number of serious failings by Park Row were identified in relation to the suitability of its customer advice. These include failing to ensure that advisers both properly evidenced the suitability of sales and offered suitable advice to customers at all times and for all products.

Park Row also failed to ensure that its systems and controls were adequate and consistently failed to take action to rectify these failings despite the fact that concerns were highlighted to the firm on a number of occasions.

Peter Sprung was chief executive of Park Row and between January 2007 and January 2009 his conduct fell short of what was expected of a senior manager of an authorised firm. He failed to take steps to ensure that Park Row and its advisers properly evidenced the suitability of sales and that sales were actually suitable, in particular in relation to pension advice. Advisers sometimes provided advice in relation to certain products on which they were not authorised to advise and it was identified that there was a danger that some of them may have selected products based on the fact that they would receive higher commission. Sprung also failed to ensure that the systems and controls were adequate to manage the risks to the business, and to ensure the suitability of advice through compliance checks.

Margaret Cole, FSA director of enforcement, said: “Park Row failed to take adequate action to address failings in systems and controls to ensure its advisers were giving customers suitable advice