FA censured by the FSA

News Article - 18 October 2006
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A financial advisor has been publicly censured by the Financial Services Authority (FSA) for not making apparent the risks of income withdrawal to consumers with small pensions.

The failings of advisor GD Tancred Financial Services Limited were discovered by the FSA as it probed the ways in which small businesses give income withdrawal advice. Withdrawing could result in people having less to spend during their retirement and so is only suitable for a restricted number of people.

GDT has agreed to vary its permission so that other companies must be signed off by an independent, qualified person. It is now writing to its customers to increase their awareness of the risks of withdrawing income and offer them a review of their circumstances.

Feedback has been given to other firms in the market and the FSA now stipulates that small businesses review their workings to ensure customers are fairly treated and that regulations are met.

According to the FSA, income withdrawal enables people to take a sum from their pension pot and receive an income from the remaining amount.

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