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Firm fined £49k for poor advice

Published on 29 Jan 2010 under category: legal

A Derbyshire insurance firm has been fined £49,000 for failing to treat its customers fairly.

The Financial Services Authority (FSA) investigation found that Sett Valley Insurance services had failed to "communicate with them [clients] in a way that was clear, fair and not misleading".

It was also found that the firm did not maintain adequate records of customers' personal and financial circumstances.

Margaret Cole, director of enforcement and financial crime at the FSA, said: "The partners of Sett Valley failed to control their business effectively and exposed their customers to the risk of receiving unsuitable advice.

"Had they not agreed to settle this enforcement action at an early stage, the fines would have totalled £70,000."

Leslie Lugsden and John Hargreaves, the firm's senior management, were each fined £10,500 for not fulfilling their duties as 'approved persons', with the firm overall being fined £28,000 for breaching the FSA Principles for Businesses.

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