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Hundreds to get redress after £1.1m pension fine by FSA

The FSA has fined AWD Chase de Vere Wealth Management £1.12m for pension misselling and ordered it to pay “substantial” compensation to clients.

The regulator says it uncovered serious failings in the firm’s pension transfer, pension annuity and income- withdrawal business that led to misselling.

Up to 800 customers may have received unsuitable advice in relation to 1,200 sales between February 2006 and October 2007. Net commission from all such sales was £8.6m during this period.

The FSA found the firm missold some pension transfers and pension annuities by recommending products to customers with adequate provisions or whose risk attitude did not match the products that were recommended.

The FSA says failings continued after the firm’s weak compliance controls were flagged up by the regulator.

The firm has since restructured senior management and its compliance department and dismissed several advisers and sales managers.

AWD Group chief executive Mike Kirsch says it is too early to speculate on compensation costs but says the sums are expected to be small compared with pension misselling cases of the past.

He says that most of the failings relate to not being able to document or justify why certain higher-priced products were chosen.

Kirsch says: “We very much regret the regulatory lapses that occurred in the past and our new management team has worked very closely with the FSA to correct matters.”


Straw seeks review on repo case

Justice Secretary Jack Straw has called for the Government to review the implications of a High Court ruling this week that affirmed a mortgage lender’s right to put a property up for sale without a court order. The ruling by Mr Justice Briggs was in a case brought after GMAC-RFC appointed a receiver to auction a buy-to-let property when the borrower went into arrears.


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