Firm fined over bad pension advice

A SUBSIDIARY of the financial services group IFG has been fined close to €250,000 in Britain for serious failings in the advice it gave to clients cashing in their pension early.

Financial Services Authority said Berkeley Jacobs Financial Services showed "a blatant disregard for consumers' interests" and tried to release as much cash from people's pensions as possible, often much more than the person needed or wanted.

Berkeley Jacobs was acquired by IFG in 2000 and it has had to put aside €1.3 million to cover compensation for the 5,000 clients affected. The financial adviser was also censured for its misleading television adverts, which promoted only the benefits of releasing money from a pension early, and failed to warn people that doing so would reduce their retirement income.