FSA has fined a small financial adviser £14,000 for breaching Principle 9 in its giving of advice. It found Henry Neil Ltd had not:
- adequately determined its customers’ attitude to risk;
- done satisfactory or independent product research to support its recommendations;
- adequately explained to its customers the reason for, or suitability of, its recommendations; or
- linked recommendations to surrender parts of an existing bond with its advice to reinvest the proceeds in a new bond and adequately explain the overall effects of its recommendations.
The failings led to 13 customers being at risk of buying unsuitable bonds. FSA also told the firm to commission an external review of products it sold over a two and a half year period and compensate any that suffered loss.