Former LIA president Peter Sprung has been banned from taking senior positions for five years and fined £49,000 by the FSA for failings in his role as Park Row chief executive
Sprung, who championed professionalism among advisers, was hit with the penalty after failing to take reasonable steps to ensure Park Row complied with FSA requirements.
Between January 1, 2007 and January 20, 2009, Sprung’s conduct fell short of the FSA’s prescribed regulatory standards for approved persons by failing to ensure Park Row and its advisers properly evidenced the suitability of sales.
The fine related to pension advice, advisers providing advice without authorisation, the risk of selecting products based on higher commission, failure to ensure that systems and controls were adequate to manage the risk of the business and failure to ensure suitability of advice through compliance checks.
Sprung failed to ensure advisers gathered and retained sufficient information and he failed to recognise that the problems were systemic in nature.
The FSA says Sprung was made aware of deficiencies in systems and the potential risks to consumers on several occasions but his action was insufficient.
Sprung settled at an early stage, qualifying for a 30 per cent reduction in penalty. The FSA would have otherwise imposed a fine of £70,000.