FSA fines AWD Chase de Vere for mis-selling pensions

by Gill Montia

Story link: FSA fines AWD Chase de Vere for mis-selling pensions

The Financial Services Authority (FSA) has fined AWD Chase de Vere Wealth Management £1.12 million for serious failings in its pension transfer, pension annuity and income withdrawal business.

The regulator found that the firm mis-sold some pension transfers and pension annuities by recommending products to customers who already had adequate existing pension provisions.

In addition, some customers were recommended products that did not match their attitude to risk and the firm did not always disclose the cost of products.

In a review of certain AWD Chase de Vere records, the FSA found that 28% of transactions had resulted in mis-sales.

The Authority’s director of enforcement, Margaret Cole, comments that the fine reflects the fact that AWD failed to establish its customers’ needs and did not provide them with complete and accurate information.

However, the level of the penalty recognises that the firm has now reviewed its past business and taken steps to compensate customers where appropriate. It also agreed to settle at an early stage of the FSA’s investigation.

The company has estimated that up to 800 clients may have received unsuitable advice in relation to 1,200 sales between February 2006 and October 2007.