RSM Tenon in dispute with insurers over FSA settlement

by Kevin Reed

More from this author

22 Oct 2012

  • Comments
RSM Tenon

A DISPUTE has arisen between RSM Tenon and its insurers over who should pick up the tab for costs arising from the firm's Financial Services Authority (FSA) fine in 2010.

RSM Tenon was fined £700,000 by the FSA for "significant failings in its advice and sales processes relating to Lehman-backed structured products". The FSA had found poor systems and controls of the marketing and distribution of structured products and in its pensions-switching business.

The advisor's latest set of accounts has revealed an argument with its insurer over sharing out the cost of undertaking remedial action arising from the FSA settlement.

RSM Tenon is also looking for indemnification of the whole of the redress payments required to be made to investors from insurers subscribing to its professional indemnity programme.

Its financial management service line took a £4.3m costs hit in 2012 in terms of dealing with obligations arising from the FSA settlement.

"A dispute has arisen between the group and its insurers as to the extent to which the sums claimed are covered under the programme, and insurers disagree between themselves as to how their liability for those sums should be shared. These disputes have been referred to arbitration," the firm said in its statement to the stock exchange.

An outcome is expected before the end of the financial year.

Visitor comments

blog comments powered by Disqus

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

  • Send

Charterhouse Accountants

Finance Officer

Charterhouse Accountants, Beaconsfield, Permanent, Full Time, £ Competitive




Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials


Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you



Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.


iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.