FSA fines IFA firm £56k over Keydata

Care Asset Management has been fined £56,000 by the Financial Services Authority (FSA) for breaching customer trust over Keydata.

The FSA said the penalty related to Keydata sales to 98 customers, amounting to a total of £3.1m being invested. Care, a Manchester-based IFA focused on providing advice to customers approaching or in retirement including customers in care homes, agreed to settle at an early stage of the FSA's investigation. It, therefore, qualified for a 30% discount under the FSA's executive settlement procedures. Without the discount it would have faced a £80,000 fine. The Keydata products involved investments in corporate bonds, which used the funds raised to purchase and hold life insurance po...