The FSA has fined a Maidstone-based IFA 60,000 for approving misleading financial promotions and related control breaches.
Kings IFA has been punished for promotions issued by an unregulated firm Regal Partners Ltd, which acted as an introducer for Kings. The promotions concerned pension unlocking, a process by which a consumer can release their pension assets before retirement.
The FSA says the promotions, which mainly took the form of TV advertisements, direct mailings, and brochures, failed to fairly and adequately describe the risks associated with pension unlocking. They also included misleading claims that pension unlocking amounted to making the most of a customer’s pension assets.
Kings has agreed to appoint an independent third party to review its procedures for approving and monitoring financial promotions.
Director of retail themes Vernon Everitt says:
“Firms must have adequate systems and controls to ensure financial promotions are clear, fair and not misleading, whether they issue them themselves or through another firm.