< Back to previous page

FSA censures London stock broking firm

Published on 19 Feb 2010 under category: legal

A London based stock broking firm has been censured by the Financial Services Authority for contravening good practice on several counts.

Wills & Co, who had been fined £49,000 on a previous occasion, was not monitoring its advisors properly despite a warning from the industry standards body.

An earlier investigation had found that the firm had "poor sales practices", which included giving weak risk warnings and misleading information to its high risk penny share customers.

A further review from the FSA found that it had failed to correct its practices.

The firm will now have to write to its customers to inform them that the FSA has banned it from giving investment advice.

Margaret Cole, director of enforcement, said: "What makes this case particularly serious is that the firm was fined by the FSA and promised the FSA that its treatment of customers had improved when that was plainly not the case.

"This is unacceptable and justifies the action we have taken against the firm and its directors."

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