Scotts Private Client Services has been fined £25,000 by the FSA for serious failings. Scotts introduced £6.7m of investors' funds into an unauthorised and apparently unlawful investment scheme operated by Nottingham accountants Dobb White & Co which has subsequently been subject to separate insolvency action by the FSA.
The FSA says it would have imposed a much more substantial financial penalty were it not for Scotts' very limited financial resources and the desire of the FSA that those resources be used to assist in obtaining redress for investors.
Director of enforcement Andrew Proctor says: “We warn investors repeatedly of the dangers of investing with unauthorised firms promising high returns at low risk. Schemes that sound too good to be true usually are. It is a sad irony that in this case it should be Scotts, an authorised firm, that let down investors by introducing their money to an unauthorised firm withough carrying out adequate checks.”