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City watchdog fines IFA firm for customer advice failures

Published on 16 Apr 2010 under category: legal

An IFA firm has been fined £24,500 by the industry watchdog for putting customers at risk with inappropriate advice on pension-switching.

The Financial Services Authority (FSA) found that Robin Bradford Ltd kept poor records on customers' circumstances and provided insufficient information to assist customers.

It is the third firm that has been penalised under recent reforms on advice in this area, which came into force in 2008 after the firm found half of the 30 firms investigated needed further help with requirements.

In addition, the company failed to oversee advisors, resulting in further failures down the line.

Management at Robin Bradford also disclosed that the company had only put in processes dedicated to monitor pension switching advice after 2006 and failed to keep statistical data on pension transfers.

Tom Spender, head of retail enforcement at the FSA, said: "This is another example of the FSA's commitment to taking action against firms who fall below our standards for pension switching.

"Firms need to get their houses in order as failure to do so will result in swift and severe action by the FSA."

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