Wealth manager Ashcourt Rowan has agreed to a fine of £412,000 from the FSA for a number of legacy issues relating to investment suitability in its Savoy business.
The group said although this is a significant fine, it chose to accept the FSA's findings and agree an early settlement.
Chairman Kenneth West said: "In the past our processes and systems were not as robust as they should have been and this has been a key focus of the Change Management Programme over the past year. It is absolutely right that we should resolve legacy issues like these ones whilst aiming to build best in class administration and compliance systems for the future."
The fine contributed to an overall loss before tax of £1.2m for the group for the six months ended 30 September 2012. However, underlying profits on an EBITDA basis were £0.5m for the period.
Revenues were £16.1m compared to £18.4m for the same period last year. Meanwhile, funds under management and influence fell slightly from £4.1bn for the full year to 31 March 2012 to £3.8bn.
The group said it remained confident on the full year outlook, with activity levels since the start of the second half of the year improving significantly to more normal conditions. Its Change Management Programme is on track for completion by the start of the next financial year.
Chairman Kenneth West also said he was stepping down and will be replaced by Hugh Ward, former CEO of Invesco UK, with effect from 1 January 2013.
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