Adviser hit with £28k fine for failing to explain risk

The FSA says the firm, Legacy Financial Planning, also failed to make adequate records to demonstrate the suitability of its advice. An investigation of Legacy's business found the firm had breached Principle 9 by issuing suitability letters that did not properly explain the reasons for making a particular recommendation and failed to maintain records to demonstrate the suitability of its advice. The FSA also found the firm to be in contravention of Principle 7 by providing inadequate documentation to customers. Suitability letters failed to disclose risks and disadvantages involved i...