The UK Financial Services Authority has fined investment firm Trigon Pensions Limited GBP10,500 for failing to monitor advisers effectively at its appointed representative, Trigon Financial Services.
During the Financial Services Authority (FSA) investigation in January 2006, the UK regulatory body found that Trigon Financial Services (TFS) did not record sufficient customer information and, as a result, was unable to demonstrate the delivery of quality advice. In addition, the investment group failed to conduct an adequate training and competence scheme for advisers, as well as sending inadequate suitability letters.
Trigon’s failures were serious and mirrored some of the main failings we found during our work into the process of giving financial advice last year, said Jonathan Phelan, head of retail enforcement at the FSA. At that time we identified the key areas that firms needed to address which included training and competence, the production of clear suitability letters and controls for monitoring the advice process.
The FSA has instructed Trigon to appoint an industry expert to carry out a past business review. Trigon has agreed to settle at an early stage and therefore qualifies for a 30% discount. Prior to the discount, the firm would have faced a penalty of GBP15,000.