FSA fines RSM Tenon £700,000 over Lehman advice
RSM Tenon fined in the first enforcement action resulting from the FSA’s review of marketing and distribution of structured products
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.”
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