Blog: Why do firms ignore FSA warnings?

John Bakie argues many FSA fines could have been avoided if firms would only listen to the regulator

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Last week's update on the FSA's pension switching review has brought to light yet more cases of firms being warned by the FSA over their conduct, systems and controls, or the suitability of their advice...and then doing nothing.

While it is often huge fines which make the headlines, we have seen little of the remedial work the FSA carries out behind closed doors. A series of recent fines and today's update on pension switching have shown firms that don't live up to the FSA's expectations often fail to improve matters, even once the regulator has intervened. Of the worst-performing firms in it original review - the 25% who provide unsuitable advice in 33% or more of their pension transfer cases - there has been "little or no" improvement over 18 months later, the FSA said.. Of the 22 firms selected for a re...

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