FSA has issued a final notice for Exclusive Asset Management Limited (in liquidation) (Exclusive) for failing to comply with the following principles:
- Principle 3 (management and control). Exclusive failed to take reasonable steps to comply with regulatory requirements, including procedures relating to monitoring advisers and the suitability of their advice, and training and competence.
- Principle 7 (communications with clients). Exclusive failed to pay due regard to the information needs of its clients and communicate information to its clients in a way that was clear, fair and not misleading.
- Principle 9 (customers: relationships of trust). Exclusive failed to take reasonable steps to ensure the suitability of its advice.
FSA regarded Exclusive's failings as reckless and systemic. These failings were particularly serious because Exclusive had exposed customers to the risk of receiving unsuitable advice, could not show that its recommendations were demonstrably suitable and had failed to act on issues that it had already become aware of. FSA would have imposed a financial penalty of £60,000 but decided it would not be appropriate given Exclusive's liquidation. (Source: Exclusive Asset Management Limited (In Liquidation) Final Notice)