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Tenon hit with FSA sanctions

THE Financial Services Authority (FSA) yesterday handed out its first fine in connection with investments backed by the collapsed Lehman Brothers bank after carrying out a review of the structured products market.

The City watchdog fined accounting firm RSM Tenon £700,000 on charges that it failed to “treat some of its customers fairly” between November 2007 and August 2008 on the sale of products backed by fallen bank Lehman Brothers.

“This is the first action we have taken for advice failings relating to Lehman-backed structured products following our recent review, and we acted swiftly and decisively in order to return money to investors as quickly as possible,” said FSA director of enforcement and financial crime Margaret Cole.

The FSA additionally charged Tenon with failing to have appropriate risk management systems put into place to manage and control its pension switching business.

Cole reiterated that the FSA will continue to take tough action where it finds evidence that firms are giving unsuitable advice to investors.

A spokesperson from Tenon said: “Tenon has cooperated fully with the FSA during its review and is committed to resolving any issues which arise. [Tenon] will, in line with its usual policy, offer redress to any clients who are ultimately found to have received unsuitable advice.”

Tenon is one of three companies the regulator is investigating as a result of its review. The FSA declined to give any further details on the other two companies but said that the investigations were ongoing and have yet to reach a conclusion.