Division failed to ensure it was giving suitable investment advice to consumers, regulator said
The Financial Conduct Authority (FCA) has fined AXA’s wealth management arm £1.8m for “failing to ensure it gave suitable investment advice to its customers”.
The regulator said AXA Wealth Services’ shortcomings came to light during an FCA review.
In addition to the fine, AXA has agreed to contact customers who may have been affected by its failings. A third party will oversee any issues identified by this contact exercise.
FCA director of enforcement Tracey Dermott said: “AXA fell short of its responsibilities to its customers, many of whom were elderly, retired and financially inexperienced.
“Its failures resulted in an unacceptable risk of AXA selling products that were unsuitable for its customers.
“AXA’s failures were avoidable, coming despite repeated warnings from the FCA’s predecessor to the industry about investment advice.”
She added: “The FCA will continue to take tough action against firms who fail to comply with their responsibilities to ensure that consumers get a fair deal.”
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