Langtons handed £63,000 fine from FSA
The Financial Services Authority (FSA) has fined Langtons (IFA) £63,000 for not having systems in place to make sure its advisers were trained and competent. The FSA also found that Langtons failed to properly allocate roles and responsibilities to its senior management. As a result of these failings, the FSA found that customers were put at risk, as systems and controls were inadequate.
According to the FSA, Langtons did not determine the training needs of its investment advisers and did not properly record and monitor any training that took place. Margaret Cole, FSA Director of Enforcement, said: ‘Langtons’ senior management could not show that they understood or even knew their responsibilities as a regulated business and thereby the firm unnecessarily exposed its consumers to potential risk.’
The failings also meant that Langtons’ complaints handling procedures were inadequate and it failed to ensure complaints were dealt with independently. Additionally, the approval of its financial promotions was not carried out by a person with appropriate expertise to ensure that they were clear, fair and not misleading.
Langtons has engaged an independent consultant to review its compliance procedures and has agreed to an early settlement. The FSA took this into account when issuing the fine, which otherwise would have been £90,000.