The regulator says advisers at the firm failed to take reasonable steps to ensure recommendations were suitable for their customers.
Pensions unlocking allows people aged 50 and over to take some or all of the benefits of their pension in a lump sum and/or income before they retire.
The FSA found that between November 2002 and November 2005, Braemar persistently failed to collect sufficient personal and financial information about their customers before making recommendations to them to unlock their pensions. The firm’s suitability letters were inadequate and they also failed to demonstrate all the alternative options available to customers during the sales process.
FSA managing director for retail markets Clive Briault says: “Braemar is one of the largest players in this sector of the industry and it should have been able to demonstrate that product recommendations were suitable for its customers.”