The Financial Services Authority levied a 1.1 million fine against AWD Chase de Vere Wealth Management for “serious failings in its pension transfer, pension annuity and income withdrawal business that resulted in mis-selling.”
The FSA found that the firm mis-sold some pension transfers and pension annuities by recommending products to customers who already had adequate existing pension provisions or whose attitude to risk did not match the products recommended to them, for example. The firm has estimated that as many as 800 of its customers may have received unsuitable advice in relation to 1,200 sales between February 2006 and October 2007.
The FSA also found that the firm sometimes failed to properly disclose the risks and costs of the products it recommended, and was also unable to demonstrate the suitability of its advice from its own records in 39 percent of the transactions which were reviewed. Based on a sample of recommendations, the FSA found that 28 percent of transactions resulted in mis-sales.
“Firms must treat their customers fairly by making every effort to provide them with suitable advice. This fine of 1.12 million reflects that AWD Chase de Vere failed to establish its customers’ needs and did not provide them with complete and accurate information, which resulted in a large number of mis-sales,” said Margaret Cole, FSA director of enforcement.
jt