The FSA has publicly censured Exclusive Asset Management, a Birmingham based independent financial adviser, for systems and controls failings, an inability to demonstrate the suitability of its advice and failing to communicate with clients in a clear, fair and not misleading way.
Exclusive went into voluntary liquidation on May 24, 2011. Were it not for that, the FSA would have imposed a financial penalty of £60,000.
The case is related to that of Gary John Hexley who worked for Exclusive between January 2009 and May 2010 and was publicly censured and prohibited by the FSA on June 13, 2011, for giving customers unsuitable investment advice.
The failings at Exclusive were identified during an unannounced FSA visit in April 2010 following complaints about Hexley.
Tom Spender, FSA head of retail enforcement, said: “The fine we would have levied on Exclusive reflects the seriousness of the failings found at the firm. Financial advisers and providers alike must take notice of Exclusive’s failings and ensure they learn from them.
“Firms operating in this industry must comply with the FSA’s rules and we will take robust action against firms and individuals who fail to demonstrate the required standards.”
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