The FSA has imposed a public censure on a Derbyshire financial advice firm for failing to ensure its advice on pension income drawdown products was suitable.

The problems at Cheshire Life & Pensions Consultants were established last year by an FSA team conducting a visit focused on treating customers fairly as part of the FSA’s enhanced supervisory strategy for small firms.

Lesley Titcomb, FSA director for small firms, said: “This is the first enforcement case arising from our small firm assessment programme on the fair treatment of customers. This public censure puts advisory firms on clear notice that they must have the right arrangements in place to ensure that suitable advice is given and recorded for investment products such as income drawdown. We will continue to identify firms who fail to treat their customers fairly through our small firms assessment programme and other work and we will take action where necessary. This can and will include enforcement action and sanctions where appropriate.””