FSA fines law firm over Lehman product sales
Thursday 23 September 2010
The City watchdog has fined a Dundee law firm and two individuals for giving clients "unsuitable advice" about investing in structured products backed by the collapsed group Lehman Brothers.
The Financial Services Authority fined Thorntons Law, which has an investment services arm, a total of £35,000, after it found the firm had not given clients suitable advice.
The regulator's review found that Thorntons had recommended investing in the products even when clients could not afford to lose the money; said there was "no risk to capital" and failed to meet appropriate standards of compliance monitoring. Partner Michael Royden, who was responsible for compliance oversight, was hit with a £10,500 censure, while Robert Yarr, of McClelland Yarr Financial Services, was fined £28,000 for failing to warn clients of counterparty risk or keep adequate records.
Margaret Cole, the FSA's managing director of enforcement and financial crime, said: "Where we find evidence that firms are giving unsuitable advice to investors relating to complicated investments such as structured products we will not hesitate to take action."
- 1 Cyclist in Russia narrowly misses being hit by car and lorry
- 2 'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
- 3 What are your fingerprint words?
- 5 Pink Floyd new album: Band unveil cover art for first record in 20 years
Rihanna 'nude pictures' claims emerge on 4Chan as hacking scandal continues
Slough train station deaths: Woman and child killed after being 'pushed in front of train'
Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
Jennifer Lawrence: Leaked 4Chan sex video branded 'fake' by users
Scotland could still declare independence – even without referendum, says Alex Salmond
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
Plebgate MP Andrew Mitchell called officer a 'little s**t', claim court documents 'exposing ex-Chief Whip's 'record of abusing police'
Archbishop of Canterbury admits doubts about existence of God
Labour Party conference: Ed Balls to set out plan to freeze child benefit to balance books
iJobs Money & Business
£65000 Per Annum Benefits + bonus: Clearwater People Solutions Ltd: If you are...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree are a global FTSE 250 ...
£20000 - £25000 per annum + OTE £40000: SThree: As a Recruitment Consultant, y...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...