30 July 2009
The Financial Services Authority (FSA) has issued a public
censure on a financial advice firm for failing to ensure suitable
advice was given on pension income drawdown products.
Income Drawdown is the name given to the facility to continue to
keep your retirement savings invested and take an income each year
rather than buy an annuity. Read a drawdown overview.
The FSA's Lesley Titcomb, director for small firms at the FSA,
said:
"This is the first enforcement case arising from our small firm
assessment programme on the fair treatment of customers. This
public censure puts advisory firms on clear notice that they must
have the right arrangements in place to ensure that suitable advice
is given and recorded for investment products such as income
drawdown. We will continue to identify firms who fail to treat
their customers fairly through our small firms assessment programme
and other work and we will take action where necessary. This can
and will include enforcement action and sanctions where
appropriate."
The full press release can be read here:
FSA Press Release
The FSA's own consumer guide on drawdown can be found here on
their webpage:
FSA Drawdown Guide
