Ex-compliance officer of firm fined for structured product failings works for FSA

21 October 2010 8:00 am | By Nicole Blackmore

A former compliance officer at Thornton’s Law, which was fined £35,000 by the FSA last month for compliance failings over structured product sales, is now working at the regulator.

Alison Slingsby, who worked in Thornton’s financial services division between 2005 and 2009, joined the FSA as an associate in January.

Money Marketing understands that she is working in the enforcement division although the FSA has not confirmed her role.

In August 2009, the FSA visited Thornton’s as part of its thematic review of advice surrounding Lehman-backed structured products between November 2007 and August 2008.

The FSA reviewed 15 customer files and concluded that recommendations to at least eight of the customers were unsuitable.

Suitability letters sent to customers contained standard phrases such as “absolutely no risk to capital” to describe Lehman-backed structured products.

Following the visit, the FSA investigated Thornton’s sale of the products and identified deficiencies in the quality of advice provided and the related compliance systems and controls.

The FSA says compliance staff did not always consider themselves to be sufficiently knowledgeable about structured products to challenge the recommendations given by advisers.

Slingsby was not named in the FSA’s final notice to the firm.

An FSA spokesman refused to comment on individual staff members within the regulator but adds: “Information on a candidate’s previous roles and employers are considered very carefully during our recruitment process.”
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