FSA fines Braemar
Losses & Lawsuits
However, the FSA discovered that between November 2002 and November 2005 Braemar had not been taking reasonable steps to make sure advice given to potential clients seeking to undertake pension unlocking schemes was customer specific.
The FSA deemed the failure by Braemar to give out suitable recommendations to be "very serious, because by unlocking or releasing their pensions early, consumers face the risk of having less than they expect to live off in retirement".
Clive Briault, FSA managing director of retail markets said: "Braemar is one of the largest players in this sector of the industry, and it should have been able to demonstrate that product recommendations were suitable for its customers. When unlocking a pension, the onus is on the firm to ensure that the customer is aware of all the risks within the product as well as any alternative options available to them."
Braemar was fully compliant in the investigation, and this was reflected in a 30% reduction being levied on its fine, originally set at £260,000.
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