Investment firm fined over advice
Financial-services firm Henry Neil has been fined £14,000 by the Financial Services Authority (FSA) for giving unsuitable investment advice.
The watchdog found that 13 customers risked buying unsuitable investments after being advised to give up segments of existing offshore bonds and reinvest in new bonds.
Says FSA director of enforcement Margaret Cole: "This fine puts firms on clear notice that they must have the right arrangements in place to ensure that suitable advice is given and recorded.
"When making an investment recommendation, firms must ensure that customers have all the necessary information to decide whether the recommendation is right for them.
"This includes information about relevant costs and charges. Where firms cannot demonstrate this, we will take action which will include imposing disciplinary sanctions where appropriate."
The FSA found that the Kent company had breached Principle 9 of the FSA's Principles for Businesses. It must now appoint an external compliance consultant to conduct a review of products sold between June 10 2005 and December 31 2007, and compensate any customers who may have suffered loss.