View more on these topics

Compliance director banned for mishandling complaints

The FSA has banned Jonathan Leigh Hardie, of Primedale Financial Services, from being a senior manager after he mishandled mortgage endowment complaints over a five-year period.

The regulator says Hardie, a director responsible for compliance at the now defunct company, failed to consider his regulatory responsibilities when dealing with complaints.

The FSA found that between January 2001 and May 2006, Hardie did not assess complaints fairly and objectively, having already decided that Primedale had never knowingly missold an endowment.

He did not investigate missing information relating to complaints or consider the suitability of recommendations and he also failed to give customers proper, fair and balanced reasons for rejecting complaints.

The FSA says Hardie did not identify and remedy recurring problems in Primedale’s endowment mortgage complaint handling procedures and that he reviewed complaints for which he was the original adviser.

As a result, the regulator says customers were exposed to the risk that they would not receive compensation to which they were entitled.

Head of retail enforcement Jonathan Phelan says firms must have in place and operate an effective complaint handling system as a key part of treating customers fairly.

He says: “Mr Hardie was responsible for ensuring that Primedale reviewed and responded fairly to the mortgage endowment complaints it received but fell a long way short of achieving this and as a consequence has been banned from being a senior manager.

“Our action should leave firms in no doubt that the FSA places great emphasis on the importance of adequate complaint handling systems and individuals responsible for handling complaints should take appropriate steps to assess complaints fairly, consistently and effectively.”

Recommended

Bernard Henshall

Bernard Henshall, head of multi-manager distribution at Scottish Widows Investment Partnership, is relishing many aspects of his new job but airline breakfasts are not among them.

Manifesto brings IFAs in from cold

Aifa’s manifesto for advice is a remarkably astute, agenda setting document. It sets out rights and responsibilities for advisers and has scored a remarkable success in securing the endorsement of the minister for pensions reform Mike O’Brien.

Friends quits wealth sector

Friends Provident is pulling out of wealth management and will focus resources on group pensions, protection and offshore business in a bid to improve profitability.Announcing the results of its strategic review last week, the company said that it will sell its 53 per cent stake in F&C Asset Management as well as wealth management arm […]

Dividend slump? Not if you look globally

By George Boyd-Bowman, Manager of the Neptune Global Income Fund Recent research has indicated that global dividend growth will slump by as much as 50 per cent in 2016. As collapsing commodities hit high-profile dividend payers, George Boyd-Bowman explains why the US and Japan are his top picks for income growth in 2016. Click here […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment