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Firm fined £70,000 for failing customers

Published on 25 Feb 2010 under category: legal

A firm has been fined £700,000 by the industry watchdog for giving poor advice on Lehman-backed structured products.

The Financial Services Authority (FSA), in its first case resulting from a review of the structured products markets, found that RSM Tenon Financial Services Limited (Tenon) had failed to treat its customers fairly by not monitoring the suitability of advice and not asking for sufficient personal and financial details to back sales.

Margaret Cole, the FSA's director for enforcement and financial crime, said: "This is the first action we have taken for advice failings relating to Lehman-backed structured products following our recent review, and we acted swiftly and decisively in order to return money to investors as quickly as possible.”

Since the beginning of the year, the FSA has been intensively scrutinising the industry for its handling of consumers.

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