Last month, TFS became the first national financial advice firm to be fined by the FSA for failings relating to Lehman-backed structured products.
The firm was fined £700,000 for advice and sales failures relating to Lehman-backed structured products and for failure to prevent unsuitable advice on pension switching.
The FSA estimates the firm’ total of Lehman-backed structured products which may be subject to redress to be £1.8m. The TFS board believes the enf-orcement costs will not have a material impact on the continuing business.
An RSM Tenon spokesman says: “The merger was based on all the facts. Former RSM BJ management have helped to mastermind this settlement. They remain prominent in the management of the renamed financial management division and at the heart of all compliance and client care procedures. The intention and commitment remains to grow this part of the business.”