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Daily Insurance Industry News
Thursday 22nd of February 2018
May 16, 2008

Axa’s IFA Thinc subsidiary fined £900,000

by Gill Montia

Story link: Axa’s IFA Thinc subsidiary fined £900,000

Axa’s IFA Thinc subsidiary fined £900,000

Axa’s independent financial adviser subsidiary, Thinc Group, has been fined a colossal £900,000 by the Financial Services Authority (FSA) for serious failures in its sub-prime mortgage business.

The FSA found evidence of poor record-keeping and a number of other offences, including the failure to demonstrate why some customers were sold sub-prime mortgages.

The findings questioned whether the credit histories of some of the firm’s clients merited the sale of a sub-prime product and whether the advice given had taken into account a customer’s ability to pay for the loan that was recommended.

The regulator has been keeping close tabs on companies in the UK sub-prime mortgage market since the onset of the US sub-prime crisis and the fine imposed on Thinc Group is the largest ever made.

Thinc Group was not accused of mis-selling and the FSA had received few complaints about its advice but according to the FSA’s director of enforcement, Margaret Cole, the authority is determined to impose higher fines for serious failings in the retail market.

Axa acquired Thinc in 2006. The business will remain under review until the FSA is satisfied that it has taken remedial action.

 

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