Blog: Why do firms ignore FSA warnings?

John Bakie argues many FSA fines could have been avoided if firms would only listen to the regulator

clock

Last week's update on the FSA's pension switching review has brought to light yet more cases of firms being warned by the FSA over their conduct, systems and controls, or the suitability of their advice...and then doing nothing.

While it is often huge fines which make the headlines, we have seen little of the remedial work the FSA carries out behind closed doors. A series of recent fines and today's update on pension switching have shown firms that don't live up to the FSA's expectations often fail to improve matters, even once the regulator has intervened. Of the worst-performing firms in it original review - the 25% who provide unsuitable advice in 33% or more of their pension transfer cases - there has been "little or no" improvement over 18 months later, the FSA said.. Of the 22 firms selected for a re...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Advisers warn salary sacrifice cap risks deterring pension saving

Advisers warn salary sacrifice cap risks deterring pension saving

Restriction will raise £4.7bn in 2029/30

Sahar Nazir
clock 27 November 2025 • 3 min read
Advisers on cash ISA allowance cut: Move welcome but education concerns persist

Advisers on cash ISA allowance cut: Move welcome but education concerns persist

Limit cut from £20,000 to £12,000 confirmed in Autumn Budget today

Sahar Nazir
clock 27 November 2025 • 3 min read
Reeves promises to not 'return back to austerity' in pre-Budget message

Reeves promises to not 'return back to austerity' in pre-Budget message

'Biggest drive for growth in a generation'

Michael Nelson
clock 26 November 2025 • 1 min read