The recent £900 000 fine levied on the Thinc Group could pave the way for more claims in the financial services sector, warns Browne Jacobson, the specialist insurance law firm.
Nik Carle, a partner in the firm’s professional indemnity (PI) group, suggests lenders and financial advisers would do well to review their processes in the wake of the fine. While the significant size of the fine was based on Thinc’s serious failings in advising on sub-prime products, the move by the regulator signals a clear resolve to punish shoddy practice across the board, he says. “This decisive move by the FSA sets a high bar for the assessment of sub-prime lending and advisory practice. There is certainly scope to adopt the FSA’s ‘Principles for Businesses’ as a benchmark when l...
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