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A major financial advice firm has been fined more than £1m by the City watchdog for mis-selling pensions to investors.
The Financial Services Authority (FSA) said AWD Chase de Vere Wealth Management had sold pensions and annuities to customers who already had adequate pension provision, or whose attitude to risk did not match the product they were recommended.
In the 18 months between February 2006 and October 2007, AWD made 4,300 sales of pension transfers, annuities and income withdrawals to around 2,800 customers. As many as 800 of those customers may have invested their money after receiving unsuitable advice.
The FSA also found that the firm sometimes failed to properly disclose the risks and costs of the products it recommended. It was unable to demonstrate the suitability of its advice from its own records in 39% of the transactions reviewed by the watchdog, and of a sample of records examined by the FSA 28% resulted in mis-sales.
Mike Kirsch, chief of AWD Group, said he regretted the regulatory lapses made by the firm in the past, adding that a new management team had been working with the FSA to correct matters.
"We regard any lapse in our standards as unacceptable. However, fewer than 1% of our clients have been affected and we are in the process of identifying all the cases and taking steps to address and compensate clients for any potential loss.
"I would like to apologise to all our clients who have been affected."
The FSA's director of enforcement, Margaret Cole, said: "Firms must treat their customers fairly by making every effort to provide them with suitable advice.
"This fine of £1.12m reflects that AWD Chase de Vere failed to establish its customers' needs and did not provide them with complete and accurate information, which resulted in a large number of mis-sales."
Pensions mis-selling was a big issue in the late 1980s and early 90s after huge numbers of investors were sold inappropriate policies by advisers motivated by big commissions.
Many people already in pension schemes were encouraged to transfer their money, even though they lost some of the benefits they had acquired as a result.
The FSA said it would be continuing a review of the pensions transfer industry and giving firms information on what it expected of them.
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