AXA UK fined for advice failures
AXA Wealth Services in the UK has been given a £1.8 million (A$3.07 million) fine after poor investment advice put customers of NAB-owned British banks at risk.
The UK Financial Conduct Authority (FCA) administered the fine after an investigation found the company had failed to prevent the provision of unsuitable advice.
A number of former customers of the NAB-owned Yorkshire and Clydesdale Banks will be compensated for losses, according to a statement from the FCA.
“AXA fell short of its responsibilities to its customers, many of whom were elderly, retired and financially inexperienced. Its failures resulted in an unacceptable risk of AXA selling products which were unsuitable for its customers,” FCA firector of enforcement and financial crime Tracey McDermott said.
“AXA’s failures were avoidable, coming despite repeated warnings from the FCA’s predecessor to the industry about investment advice.
“The FCA will continue to take tough action against firms who fail to comply with their responsibilities to ensure that consumers get a fair deal,” Ms McDermott said.
The investigation also found AXA had “failed to have effective control over the bonuses it paid to sales advisers” in contravention of the UK’s FOFA-like Retail Distribution Review (RDR) regulations.
AXA UK ceased its advice provision agreement with the Yorkshire and Clydesdale Banks in April.
Former adviser appears in court on fraud charges
A former veteran financial adviser has appeared in court on seven charges of fra...
Government announces royal commission road map
The government’s royal commission road map has been released to the public to ...
Super reforms don't go far enough: ISA
New legislation attempting to close a loophole estimated to cost Australians $1....