Cheshire Life & Pensions censured for advice

A FINANCIAL advice firm has been censured by the Financial Services Authority (FSA) for failing to offer “suitable” advice on some pension products.

Cheshire Life & Pensions Consultants, based at Whalley Bridge, near Stockport, is the first firm to face a “treating customers fairly” case from the regulator.

The FSA said the Cheshire had failed to fully inform clients interested in income drawdown pensions – those that allow savers to take cash out before the maturity date.

According to the FSA the adviser failed to record adequate information about customers’ circumstances; include  adequate risk warnings in suitability reports about the product; and undertake sufficient research to ensure the suitability of recommendations.

Cheshire avoided a fine after agreeing to undertake a past business review, write to all income drawdown customers and appoint an external compliance consultant.

Lesley Titcomb, FSA director for small firms, said: “This is the first enforcement case arising from our small firm assessment programme on the fair treatment of customers. This public censure puts advisory firms on clear notice that they must have the right arrangements in place to ensure that suitable advice is given and recorded for investment products such as income drawdown.”