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More firms targeted by FSA for sales failures

Published on 26 Feb 2010 under category: legal

Two individual financial adviser firms have been targeted by the standards body for poor sales practices.

The announcement follows the £700,000 fine from the Financial Services Authority (FSA) given to RMS Tennon Financial Services (Tennon).

Speaking to FT Adviser today, Robert Sinclair, the director of the body for individual financial advisers Aifa, said that two other firms may face enforcement action and fines for selling Lehman-backed structured products.

However, there has been criticism that legislation brought in late last year to eliminate such practice is being applied retrospectively by the FSA.

Tennon is the first company to have action taken against it since the FSA announced its crackdown on poor practices in the selling and distribution of structured products.

It will now have to buy back any products given to customers poorly advised by its staff.

The firm would have received a £1 million fine, but it co-operated throughout the process with the regulator.

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