FSA fines two firms for traded policy advice failings

The UK's Financial Services Authority has fined Knowlden Titlow Financial Services GBP35,000 and Derrick Hales Financial Planning GBP10,500 for failures relating to the sale of geared traded endowment policies. Financial Services Authority (FSA) claims that these are the first enforcement cases to arise from a targeted program of work by the FSA examining the advice and sales processes of firms recommending geared traded endowment policies. The FSA identified that Knowlden Titlow failed to ensure that all of its advisers fully understood the policies and their risks before recommending them to customers; gather enough information about its customers to support and ensure the suitability of its recommendations; and adequately explain the risks associated with geared traded endowment polices. In addition to the fine, Knowlden... [read full story]