FSA fines broker Mansion House for mis-selling

The FSA has fined its third small broker for selling high risk shares since its crackdown began in Ju...

The FSA has fined its third small broker for selling high risk shares since its crackdown began in June 2006. The regulator has fined London-based stockbroker Mansion House Securities £122,500 for giving customers unsuitable and inaccurate advice when selling the shares. Mansion House, which specialises in unlisted shares, had failed to highlight the risks to clients and used “inappropriate sales practices to pressure customers into buying shares”. The broker had also failed to set up adequate compliance procedures, train staff properly, and disclose commission and charges, according t...