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FSA monitoring gives over £150m back to customers

Published on 9 Apr 2010 under category: legal

Financial services customers who have received poor advice will receive over £150 million to compensate, following intensive monitoring by the industry watchdog.

The Financial Services Authority (FSA) launched its crackdown on bad and inappropriate advice two years ago, in a bid to give consumers more confidence about the market.

Dan Waters, the FSA's director of conduct risk, said that the recent cases did not undermine the body's work so far: "The actions we have taken to raise standards have driven significant change in the market and will see large sums of money returned to customers who received poor advice."

He also added that overall more than ten per cent of the advice given from pensions switching firms would be taken into account when evaluating past business standards across the industry.

As well as inappropriate advice, some other failings identified by the FSA were ignorance of the customer's prior pension arrangements and the the creation of unjustifiable costs through portfolio advice services.

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