Firm fined by FSA for failings over Lehman-backed products
26 February 2010 at 17:15
The Financial Services Authority has fined RSM Tenon Financial Services £700,000 for failings in advice and sales processes related to Lehman Brothers-backed structured products.
Tenon was also fined for having poor systems and controls to prevent unsuitable advice in its structured product and pension switching operation.
Firms with FSA authorisation have learned that the regulatory body found Tenon in breach of Principle 3 of the FSA's Principles for Businesses in not taking adequate care to organise and control its affairs responsibly and effectively.
The company was also allegedly breached Principle 9 by failing to take enough care in ensuring the suitability of its advice to its customers.
Margaret Cole, FSA director of enforcement and financial crime, said: "Firms giving investment advice must ensure they fully assess clients' needs and make suitable recommendations - they must also have the necessary systems and controls in place to demonstrate this."
The news comes after the FSA fined Glasgow-based stock broking firm Direct Sharedeal Limited (DSL) £101,500.
According to the FSA, DSL's appointed representative First Colonial Investments had used misleading sales pitches that did not set out the inherent risks of buying penny shares.
