The FSA is currently preparing a report on the pensions transfer industry. In amongst all this it has fined a financial advice firm more than £1m for mis-selling pension products.
AWD Chase De Vere Wealth Management has been fined £1.12m by the Financial Services Authority (FSA). The firm estimates up to 800 customers may have received unsuitable advice in relation to 1,200 sales between February 2006 and October 2007.
The FSA found that there had been serious failings in the company’s pension transfer, pension annuity and income withdrawal business that resulted in mis-selling.
Based on a sample, the FSA found that 28% of transactions resulted in mis-sales. The company state that their new management team has worked very closely with the FSA to correct matters.
This is not a typical example but illustrates how closely the FSA look at an adviser’s systems and procedured, and their willingness to take appropriate action.
