UK - The Financial Services Authority has fined an IFA £250,000 for "serious inadequacies" in its monitoring and record keeping procedures.
Three subsidiaries of St James’s Place Wealth Management Group were found to have exposed investors to “unnecessary risk”.
The FSA also found “serious deficiencies in record keeping”.
Director of enforcement Andrew Proctor added: “Firms must understand that procedures to monitor advisers, particularly where high risk transactions are being recommended, are a necessity.”
Problems were first identified during a visit to St James’s Place in 1994 and a lack of improvement on subsequent visits sparked the FSA investigation.
Warnings were given in January 2000 but deficiencies were not rectified until earlier this year. The FSA said the financial penalty would have been “significantly higher” had St James’s Place not co-operated with the investigation.
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