RSM Tenon Financial Services given Lehman Brothers fine

RSM Tenon Financial Services, the advisers that sold complex Lehman Brothers investments to its wealthy clients, was today fined £700,000.

The Financial Services Authority found "significant failings" in the advice and sales efforts of the firm, an arm of the RSM Tenon public company which specialises in accountancy.

High-net-worth individuals were sold Lehman-backed structured products between November 2007 and August 2008. The US investment bank went bust in September 2008, sparking the global financial crisis.

The FSA ruling is highly embarrassing for Tenon, which is reviewing its business practices. The fine was cut from £1 million because it admitted its failings, which include failing to properly assess the risk of what it was selling.

Margaret Cole, FSA director of enforcement and financial crime, said: "Firms giving investment advice must ensure they fully assess clients' needs and make suitable recommendations.

"They must also have the necessary systems and controls in place to demonstrate this. We take failure in this area very seriously."

Two other firms are still under investigation for similar offences.