UK - The FSA has announced fines against two Pearl group companies totalling £100,000. The two companies, Pearl Unit Trusts and Pearl Assurance have paid £345,854 of compensation to 1617 customers.
The fines were imposed for not carrying out customer orders on a timely basis and for failing to establish and maintain procedures to achieve this, over the period from October 1993 to April 1999. Pearl identified the problem and reported it to IMRO in 1999.
The delays in carrying out customer orders were caused by the late submission of documents to the head office by the Pearl salesforce. The firms have had to compensate customers for the losses arising from these failures. The disciplinary action was taken under the rules of two of the FSA’s subsidiaries, IMRO and PIA, under the auspices of the FSA.
Since the beginning of the year, the PIA has taken disciplinary action against 54 firms, resulting in fines totalling £1,552,000. A total of £46m has been set aside by firms for compensation. Of those cases where disciplinary action has been taken, 15 related to pensions review failings, totalling £348,000 in fines.
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