The Financial Services Authority (FSA) has been forced to bare its teeth yet again, fining a London IFA £24,500 for failings in pension switching advice.

Robin Bradford (Life and Pension Consultants) Ltd has been penalised for exposing customers to unacceptable levels of risk of receiving poor pension switching advice, said the FSA.

The regulatory body found that Robin Bradford had failed to obtain and record relevant information from its customers to assess whether advice given was suitable, and failed to include relevant information in suitability letters to aid customers in making informed choices on the decision to switch. Between 6 April 2006 and 21 April 2008, the firm also failed to adequately monitor the quality of its pension switching advice.

The firm is reviewing the advice conducted during the period in question to investigate whether any redress is required.

"Robin Bradford Ltd exposed its customers to an unacceptable level of risk when they sought advice about pension switching," explained Tom Spender, head of retail enforcement at the FSA.

"Encouragingly, the firm has acknowledged its failings and put in place new measures to reduce the risk of poor advice; furthermore it is reviewing the pension switching advice conducted during the relevant period to see whether any redress is required."

Customers were also put at risk when Robin Bradford issues a direct offer financial promotion on switching pensions, which contained a recommendation and therefore the FSA said constituted advice. The firm's failure to communicate in a clear, fair and not misleading way put customers at risk of receiving unsuitable advice, as suitability had not been assessed for each customer.

"This is another example of the FSA's commitment to taking action against firms who fall below our standards for pension switching. Firms need to get their houses in order as failure to do so will result in swift and severe action by the FSA," Spender added.

The firm's full co-operation with the FSA meant it qualified for a 30 per cent reduction in penalty. Without the discount, the FSA would have imposed a penalty of £35,000.

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