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Finance advisors firm censured for professional negligence

Published on 12 May 2010 under category: legal

A financial advice firm has been told by the Financial Services Authority (FSA) to contact its former customers to tell them they may be entitled to claim for poor guidance.

Integrity Financial Solutions was professionally negligent by giving bad advice on geared traded endowment policies (GTEPS).

The industry watchdog found that the firm failed to keep adequate records demonstrating how it had advised customers on choosing products.

Clients of the company were also not profiled to assess their attitudes towards risk, despite the high-risk nature of the product.

Its independent financial advisors also failed to explain the dangers presented by GTEPS which the FSA describes as "complex products with significant risks attached to them".

Investigators stepped in after the firm failed to accept the findings of its own review of its GTEPS practice three years ago.

The company is currently in liquidation, so a £350,000 fine was lifted in order to allow available funds to cover customer claims.

The financial product and practices around its sales have been under scrutiny by the FSA since 2007.

If you require advice on Professional Negligence please call us on +44 (0)20 7831 0101 and ask for Peter Mellett.