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.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 23 Jan 2019Adelaide adviser permanently banned from industryBy Eliot Hastie
- 23 Jan 2019Bowen slams ‘woeful’ handling of royal commissionBy James Mitchell
- 23 Jan 2019Gender super gap lower but still at 34%By Adrian Flores
- 22 Jan 2019Advice issues stem from writing of SOAs, says RafteryBy Adrian Flores
- 21 Jan 2019Federal Court winds up CFS Private WealthBy Eliot Hastie
- 22 Jan 20192.44m Aussies suffer from financial stressBy Sarah Simpkins
- view all