Watchdog criticises advisors

A NORTH Yorkshire firm of financial advisors has been slammed by the City watchdog for failing to fully explain the risks around complex financial products.

By The Newsroom

Published 30th Jul 2010, 22:05 BST

Updated 30th Jul 2010, 22:05 BST

The Financial Services Authority said The Garrison Finance Centre in Richmond, which is now in liquidation, did not clearly explain to customers the risks of geared traded endowment policies (GTEPs).

The FSA said it only waived a 35,000 fine for Garrison so the money could be used to meet customer claims.

Garrison's liquidators have been told to write to customers to tell them they may have received unsuitable advice and could be entitled to a claim.

A number of customers re-mortgaged their homes to buy a GTEP following advice from Garrison.

Margaret Cole, the FSA's director of enforcement and financial crime, said: "Geared traded endowment policies are complex investment products with significant risks attached to them.

"Garrison failed to make this clear to its customers so many of them may have received unsuitable advice."

North Yorkshire