Axa Wealth Services (Axa) was today fined £1.8m for giving poor investment advice to elderly and inexperienced customers, even though only 82 people complained. So what went wrong?
The Financial Conduct Authority (FCA) found in a review that poor investment advice at three regional branches of Axa's bancassurance business led vulnerable investors to buy products that may not have been suitable for them. Tied advisers at Clydesdale Bank, Yorkshire Bank and West Bromwich Building Society had given poor advice to approximately 26,000 investors between September 2010 and April 2012, leading them to buy a total of £440m worth of products, the FCA found. It ruled that Axa had breached Principle 9 of the Authority's Principles for Businesses and related Rules. Only ...
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