Peter Sprung gets CII fine and five-year ban
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The Chartered Insurance Institute has banned former Park Row chief executive Peter Sprung from being a member for five years and fined him an undisclosed sum.
The CII says in addition to the fine, it has ordered Sprung to contribute to the CII’s investigations and legal costs.
In February the FSA banned Sprung, a former LIA president, from taking senior positions for five years and fined him £49,000 for failings in his role at Park Row.
The FSA says between January 2007 and January 2009, Sprung’s conduct fell short of regulatory standards for approved persons as he failed to ensure Park Row and its advisers properly evidenced the suitability of sales.
Many of the 240 ex-Park Row advisers have been waiting for reauthorisation since last November and have been unable to service clients since then.
A CII spokeswoman says: “In view of the seriousness of the FSA’s action in relation to Mr Sprung’s conduct while a director and chief executive of Park Row between January 2007 and January 2009, the CII’s disciplinary panel ordered that the member be banned from membership of the CII for a period of five years.
“Mr Sprung was also fined and ordered to pay towards the investigations and legal costs.”
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Readers' comments (26)
Anonymous | 7 Jul 2010 1:09 pm
Well thats justice, he gets a fine that he can pay from his golden handshake payment, the CII have some dosh in their account which will make their bank manager happy & the advisers who are in limbo who also have bills to pay & kids to feed, are just left in limbo. If the CII had any real balls they would have fined him more & set up a fund to help advisers sat waiting for a bunch of berks to reauthorise them.
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Anonymous | 7 Jul 2010 1:32 pm
Maybe Peter should have resigned from the CII/PFS. Might have saved him a fortune.
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Simon Webster | 7 Jul 2010 1:53 pm
Interesting case of double jeopardy.
I did not know the CII had the power to fine - and we are members I must check their rules!
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Colin Maund | 7 Jul 2010 3:27 pm
There is another person leaving the industry for whatever reason is not really important because all you hear of these days are firms & people being fined or banned for regulatory failures of one description or another probably retrospectively ! and all we have to look forward to is RDR where an estimated 40% of IFA's will leave the industry we will then have a regulator that is larger in personnel than the industry it regulates !!!! well done
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MORAL OF THE STORY - DONT JOIN PFS/CII | 7 Jul 2010 3:31 pm
And the conclusion is: Don't become a member of the CII/PFS because their solution is worse than the problem. As far as I can recall Peter was always held in high esteme and I have no reason to thing otherwise. Perhaps teh CII/PFA though police would be better offer paying their own fine after all they appointed him in the past.
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Drop the PFS CII | 7 Jul 2010 3:38 pm
I would like to turn this around!
Some while ago the PFS threatened to report me to the FSA because I had not supplied them with my CPD, which I had in any case completed. I resigned as a result of this shabby treatment. I feel the PFS/CII are too big for their boots and I further feel they have misrepresented the IFA to the regulator. Fay Goddard is still at it! I advise anyone to ditch this organisation and put your fees to better use. I would also give Peter the benefit of the doubt!
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Anonymous | 7 Jul 2010 4:01 pm
I wonder what powers they have to go after assets if he elects not to pay....
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Ewart Matthias | 7 Jul 2010 4:10 pm
So let me get this right, Peter Sprung has been fined and banned for 5 years by the FSA & now the CII for his failings as CEO of Park Row over a period of 2 years and the Chief Executive of the FSA was in charge over 4 years and gets a plum job in a new regulatory set up? Am I missing something here?
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Roddy McKenzie | 7 Jul 2010 4:33 pm
Aren't the pfs supposed to be on our side? Why then would they fine a member? What has it got to do with them? What right do they have to fine this person? Have I signed something as a member that allows them to fine me too? At a whim? With no legal redress? That is worse than the FSA in my mind as at least the FSA aren't supposed to be representing me. Last straw. Time to leave the PFS I think.
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Harry | 7 Jul 2010 7:19 pm
This is somekind of joke right?
How can the CII fine someone and then ask them to pay for it.
The CII is a farce - it claims to be non profit making but its a moneymaking machine wasting funds by being based in posh offices to name one.
They bring in the RO series of exams and say "you can have as many goes as you like" ... but I bet it costs a huge amount to sit it. Lets find out what they do with the money they get...golf trips, wining and dining and the like, they are a pathetic organisation.
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