FSA fines kilminster financial management


Kilminster, based in Bristol, failed to treat its customers fairly because it was not handling complaints in good time. In addition, it did not monitor its staff sufficiently or keep appropriate training and competence records.

Kilminster also failed to implement appropriate procedures to co-operate with the Financial Ombudsman Service, the UK body that represents consumers. The ombudsman referred Kilminster to the FSA twice for failures to pay awards promptly, and the FSA had to write to Kilminster about complying with two further ombudsman awards that Kilminster had failed to pay promptly. Kilminster has now complied with both awards and paid both complainants.

The FSA viewed the failings as particularly serious due to Kilminster's "poor regulatory history". In April 2000, the Personal Investment Authority – a predecessor organisation to the FSA – issued a formal warning to Kilminster about its selling practices, training and competence arrangements, compliance procedures and recruitment practices, which resulted in remedial action. The PIA also raised further concerns about record-keeping, training and competence arrangements and compliance procedures in May 2001, which led to additional remedial action.

To rectify things, Kilminster has upgraded its compliance functions by employing more compliance staff, and has increased its management oversight of compliance. It has also engaged independent consultants to review its complaint-handling records and procedures, and its training and competence arrangements. Kilminster agreed to settle at an early stage of the FSA's investigation, and therefore qualified for a 30% discount under the executive settlement procedures.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here