23 September 2010
FSA investigation leads to financial advisor receiving fine
The Financial Services Authority (FSA) has announced that it has fined a man £28,000 for his failure to correctly handle the sale of certain Lehman-backed structured products over the course of the period between November 2007 and August 2008.
FSA Investigations have led to Robert Peter Yarr, of McClelland Yarr Financial Services in Belfast, being found to have not been completely open and honest with certain clients as well as being incompetent.
It was revealed that Mr Yarr did not fully understand and warn customers of the dangers associated with such risk-sensitive investment options prior to the onset of the global economic downturn.
Meanwhile, he also failed to conduct effective research into these products or keep adequate records of such transactions.
Margaret Cole - managing director of enforcement and financial crime at the FSA, which was given its statutory powers in 2000 - stated individuals giving investment advice must "properly assess their clients' needs and make suitable recommendations" while also not being misleading in any way.
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Posted by Richard Saunders