Compliance system was "inadequate" in small firm fined for pension transfers

The FCA has fined a Huddersfield-based firm nearly £898,000 for its pension transfer advice, which saw 96 per cent of its British Steel Pension Scheme clients leave that arrangement even though the advice was uncompliant in 83 per cent of cases reviewed.

By Neasa MacErlean

Inspirational Financial Management (now in administration) operated a contingent charging model, and customers received their Suitability Reports after their transfer documents had been submitted in 89 per cent of these cases. Compliance arrangements in the firm are described as "inadequate" by the Financial Conduct Authority.