FSA fines RSM Tenon £700,000 over Lehman advice

The financial services regulator has fined RSM Tenon £700,000 for " significant failings in its advice and sales processes relating to Lehman-backed structured products."

The FSA also came down hard on RSM Tenon for "having poor systems and controls to prevent unsuitable advice in its structured product and pension switching business."

This represents the first enforcement action resulting from the FSA’s review of the marketing and distribution of structured products, particularly those backed by Lehman Brothers, concluded in October 2009.

The FSA said Tenon "failed to treat some of its customers fairly" in relation to its sales of Lehman-backed structured products between November 2007 and August 2008.

Andy Raynor, Chief Executive of RSM Tenon, said: "I am satisfied that all the issues the FSA have highlighted in their report have been addressed. We have treated this issue extremely seriously and Tenon Financial Services has co-operated fully with the FSA.

"Since 2007 TFS has continued to enhance the training of consultants and strengthen their systems and controls. With effect from January 2010, these activities have formed part of our enlarged financial management business and have access to the full support and resources of the group.

"I am very confident that the new management team of RSM will continue to grow the business in a controlled and compliant manner."

Further reading:

Head of tax role ditched at RSM Tenon