Last month saw the FCA fine Principal firm Alsford Page & Gems Limited (APG) £958,100.00 and ordering them to pay compensation to customers of £399,902.00 for the misconduct of its appointed representatives in the sale of extended warranty insurance policies during the period 1 February 2013 to 21 March 2016.
Executive Director of Enforcement and Market Oversight, Mark Steward remarked;
“Principal firms have a responsibility to oversee their Appointed Representatives and ensure they are carrying out regulated activities properly. Without adequate oversight, customers are at risk and, as this case shows, where that is the case, the FCA will take action against the Principal. APG’s oversight of its Appointed Representatives was inadequate and ineffective which created the risk that customers, including those who are vulnerable, might be sold products they did not really want or which did not meet their needs.”
We recommend that firms read the final notice which contains an analysis of the deficiencies in APG’s AR systems and controls and reflect on their own framework to consider whether they have ensured that they do not risk similar consumer harm.