Wealth management firm fined for failing to comply with COBS rules

15 Nov 2012

The FSA has fined Savoy Investment Management Limited (Savoy) £412,000 (including a 30 per cent settlement discount) for breaches of Principles 3 and 9 of the FSA’s Principles for Businesses and various rules in the FSA Conduct of Business Sourcebook.

Savoy had limited front office controls and its other processes were insufficient to ensure suitability of advice and portfolio management. The firm failed to collect sufficient information for “know your customer” records and the processes for compliance monitoring failed.

The FSA has stated that it is conducting a further thematic review of systems and controls at wealth management firms.

Copies of the final notice and related press release are available.