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Financial advisor fined almost £90,000 for breaches

Firm had ineffective compliance regime and misused pension scheme

A Manx financial advisor has been handed a fine of almost £90,000 for misusing its own group pension scheme and having an ineffective compliance regime.

Island Financial Solutions Limited has been given a civil penalty of £89,994 discounted by 30% by the Isle of Man Financial Services Authority.

An investigation by the authority identified a number of regulatory failings, including not disclosing fees and commission details to clients and misusing its pension scheme by not fully informing clients of the product.

The company's compliance system also didn't prevent the backdating and pre-signing of documents.

The FSA says the issues are serious, but that the directors of IFSL have recognised and accepted their failings.

The firm has already implemented new procedures to address the problems, and has been actively working with the FSA to ensure compliance.

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