12 April 2010
The Financial Services Authority (FSA) has ordered that more
than £150m be paid in compensation to customers hit by
pension switching failures.
After an FSA review, 22 companies were identified as posing the
highest risk of giving poor advice. The FSA has also referred six
companies to enforcement due to pension switch failures, including
Financial Ltd and RSM Tenon Financial Services.
Dan Walters, FSA director of conduct risk, said: "Although many
firms have changed the way they operate, we remain concerned that
some firms continue to give poor advice. Ignorance is no defence
and we will continue to focus on the high-risk firms."
The FSA said it had identified practices such as additional cost
to clients not being justified, and tied advisers failing to
investigate clients' existing pension arrangements.
The full FSA news release can be read here:
FSA NEWS ITEM
