IFA network director slapped with £49k FSA fine

Published on

The FSA has fined Charles Palmer, director of IFA network, Financial Ltd, £49,000 for management failings which resulted in poor compliance monitoring on pension switching advice during a period of rapid expansion.

Gloucestershire basedFinancial Ltd has also agreed to carry out a past business review, which may lead to customer redress if it is found that unsuitable advice was given.

During its investigation, the regulator found shortcomings in the way the firm organised its business and how responsibility for monitoring advisers was allocated to senior management. In turn, this led to concerns about the monitoring of the quality of pension switching advice given by advisers between April 2006 and August 2008.

The FSA concluded Palmer failed to establish and maintain a clear and appropriate reporting structure to ensure senior management understood and carried out their responsibilities for monitoring the network’s advisers. He also failed to ensure the firm complied with rules and requirements to ensure that pension switching advice was demonstrably suitable.

The regulator found he also did not ensure that the firm recruited sufficient and adequate compliance and support staff during a period rapid expansion of the firm’s network of advisers.

The fine takes into account the changes Palmer made to the firm’s governance and compliance monitoring arrangements since December 2007 and following a visit from the FSA to ensure it complies with FSA standards and treats customers fairly. Because Palmer co-operated fully with the FSA and agreed to settle at an early stage of the FSA’s investigation, he qualified for a 30% reduction in penalty. Were it not for this discount, the FSA would have imposed a financial penalty of £70,000.

Margaret Cole, the FSA’s director of enforcement and financial crime, said: “This is the second enforcement action we have taken following the FSA’s review of pension switching advice. As the director of the firm

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Market Harborough broadens tier two mortgage criteria to boost complex case lending

Market Harborough Building Society has introduced a series of criteria enhancements to its tier...

Coventry for intermediaries reduces rates across residential and buy-to-let ranges

Coventry for intermediaries has announced rate cuts of up to 19 basis points, with...

Halifax cuts remortgage rates across selected two and five-year fixed deals

Halifax Intermediaries has announced a series of rate cuts across its remortgage product range,...

The Leeds reports £104m profit amid robust lending and savings growth

Leeds Building Society has reported a profit before tax of £104.4 million for the...

Annual house price growth picks up as affordability improves

The UK housing market showed renewed resilience in July, with house prices rising by...

Latest publication

Latest opinions

Job cuts to inflation shock: preparing for a mortgage arrears crisis

The latest data on jobs paints a picture of a rapidly weakening labour market. The...

URGENT! AI Is coming for you. Or maybe not…

I’ll try to make this as straight to the point as I can. The...

Mind the gap: Can mortgage advice change the game for protection?

Many industry insiders still talk about the UK protection gap and how vast it...

Navigating HMO and MUFB complexity with confidence

Historically, larger Houses in Multiple Occupation (HMOs) and Multi-Unit Freehold Blocks (MUFBs) have often...

Other news

Market Harborough broadens tier two mortgage criteria to boost complex case lending

Market Harborough Building Society has introduced a series of criteria enhancements to its tier...

Coventry for intermediaries reduces rates across residential and buy-to-let ranges

Coventry for intermediaries has announced rate cuts of up to 19 basis points, with...

Halifax cuts remortgage rates across selected two and five-year fixed deals

Halifax Intermediaries has announced a series of rate cuts across its remortgage product range,...