The UK's Financial Services Authority has fined PMSG Insurance Services GBP35,000 for not organizing its business responsibly and properly to manage risk.
The Financial Services Authority (FSA) has also withdrawn its approval for the firm’s compliance officer, Irene Hall, saying that she lacked the competence and capability to ensure FSA regulations.
The firm has agreed to review its customers’ files to establish whether there has been any detriment and will undertake a past business review to identify any unsuitable recommendations that may have been made to its customers. The report will also identify whether any redress needs to be paid by PMSG to any of its customers.
Jonathan Phelan, head of retail enforcement at FSA, said: It is unacceptable that PMSG exposed at least 620 customers to the risk of being recommended mortgages that they could not afford or did not need. All firms must gather sufficient information from their customers about their needs and must organize and control their business to ensure the advice they give is suitable and customers are treated fairly.