Mega-network Sesame has been fined £290,000 by the FSA for pension unlocking.
Sesame has been fined for serious failings in its supervision of Regal Partners Financial Planning Ltd which had advised customers to release cash early from their pensions.
The advice given potentially affected about 3,205 customers between August 1999 and May 2001 The FSA is looking closely at the way a number of advisers have failed to act in the best interest of customers when advising on pension unlocking.
Enforcement director And-rew Procter says: “Sesame allowed its appointed representative to release cash from consumers' pensions with ins-ufficient regard to the impact this would have on their inc-ome. The more cash that was released, the more the consumer's hard-earned pension contributions benefited the firm rather than the customer.”
Sesame chief executive Patrick Gale says: “The fine relates to past issues that we very much regret. We have co-operated with the FSA and have put in place a proactive customer identification and compensation programme.”
Money Marketing last week revealed that the FSA fears the next big misselling scandals could come from pension unlocking and equity release.