An IFA has been censured for breaches of Principle 6 (Customers’ interests) in relation to mortgage endowment complaints handling over a four year period. In particular the firm failed to provide adequate resources, properly train staff or deal timeously with complaints. If it had not been for the firm’s financial position and undertakings it provided, a fine of £400,000 would have been imposed (Mandrake Associates Limited, 17 July 2008).

A director of the firm was prohibited from any customer facing functions for breaches of Statements of Principle 6 and 7 (William John Pirie, 17 July 2008).

A mortgage broker has been fined £35,000 for breaches of Principles 3 (Management and control) and 9 (Customers: relationships of trust) arising in connection with suitability of advice and business organization failings. In particular, the firm failed to ensure that the personal and financial circumstances of customers were fully taken into account when making recommendations and its record keeping was inadequate. Approval was withdrawn from the firm’s compliance officer because she lacked the competence and capability to oversee the regulated business, having insufficient knowledge of regulatory requirements in breach of Statement of Principle 6 (PMSG Insurance Services Limited and Irene Hall, 10 July 2008).

View FSA Final Notice - Mandrake Associates Limited, (PDF 195KB), 21 July 2008

View FSA Final Notice - Mr William John Pirie, (PDF 100KB), 21 July 2008

View Final Notice - PMSG Insurance Services Limited, 23 July 2008