The Financial Services Authority (FSA) has fined IFA network Pi Financial £58,300 for advising its clients to invest in high risk products which were "clearly" unsuitable.
Between 1 January 2009 to 3 February 2012, Pi failed to take reasonable care to ensure the suitability of its advice, the regulator said. During this period, it advised 168 clients to invest £6m in unregulated collective investment schemes (UCIS) and 362 clients to invest £20m in structured products. However, of the files the FSA reviewed, 50% were found to be unsuitable, with a disparity between the clients' moderate attitude to risk and the high risk nature of the products that were recommended. The FSA added that, in several cases, clients who appeared to have low incomes, limit...
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