£1m fine for pensions mis-selling
11 November 2008
A financial advice firm has been fined more than £1m by the City watchdog for mis-selling pension products.
AWD Chase De Vere Wealth Management, based at Paternoster Square in London, has been fined £1.12m by the Financial Services Authority (FSA).
The firm estimates up to 800 customers may have received unsuitable advice in relation to 1,200 sales between February 2006 and October 2007.
The FSA is set to publish a report on the pensions transfer industry shortly.
Failings
The watchdog found that there had been serious failings in the company's pension transfer, pension annuity and income withdrawal business that resulted in mis-selling.
Customers were not provided with "complete and accurate information".
Some customers were recommended products despite having adequate existing pension provision. The firm did not always disclose the risks and costs of its recommended products.
Based on a sample of recommendations, the FSA found that 28% of transactions resulted in mis-sales.
Mike Kirsch, chief executive of the AWD Group, said he regretted the "regulatory lapses" of the past.
"Our new management team has worked very closely with the FSA to correct matters," he said.
"We regard any lapse in our standards as unacceptable, however fewer than 1% of our clients have been affected."
He said these clients would be compensated, and he apologised to those affected.
The FSA said that it was preparing to report on the state of the pensions transfer market, including a blueprint of the standards expected of firms in the industry.