FSA fines Ward Consultancy plc 120,000

As part of its ongoing monitoring of the pensions review, the PIA Pensions Review Monitoring Department carried out a visit to Ward Consultancy plc in February 2001. This visit identified serious failings in the firm's conduct of the pensions review. These included failures to:

• adequately plan, resource and monitor the pensions review process;

• meet PIA deadlines for the conduct of the pensions review;

• carry out the pensions review in a timely fashion;

• correctly evidence the exclusion of cases from the pensions review;

• issue no loss letters which comply with the Guidance; and

• conduct compliance and causation assessments in accordance with the Guidance.

The particular factors which have influenced the level of penalty imposed on the firm are as follows:

• the firm was previously disciplined in 1997 for failing to adequately plan, resource and monitor the pensions review. Despite assurances given to PIA, the firm failed to ensure that these failures did not reoccur;

• the firm failed to take reasonable steps to ensure that its pensions review investors were not disadvantaged by the firms dispute with its PI insurers; and

• the extent of the firm's delay. The firm has still not completed Phase 1 of the pensions review, more than three years after PIAs deadline.
  

Notes for editors

1. Ward Consultancy plc was admitted to PIA membership in October 1995 and was a category B3 member, with 15 registered individuals. It became regulated by the FSA on 1 December 2001 and has the following permissions:

   (a) Advising (ex pension transfers / opt outs)

   (b) Advising on pension transfers / opt outs

   (c) Agreeing to carry on a regulated activity

   (d) Arranging deals in investments

   (e) Making Arrangements

2. This fine has been levied by the FSA following an order from the Interim Tribunal established under the Financial Services and Markets Act 2000 (Transitional Provisions) (Partly Completed Procedures) Order 2001. This order confirmed an earlier decision of the PIA Disciplinary Committee.

3. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection of consumers; and fighting financial crime.

4. The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.