Due diligence failings cost Scotts Private Client Services £25,000

“Schemes that sound too good to be true usually are,” Andrew Procter cautioned as the FSA announced a £25,000 fine against Scotts Private Client Services Ltd. The firm failed to carry out adequate checks on Dobb White & Co, in breach of Principle for Business 2 (the need to exercise due skill, care and diligence), before it introduced US$9.7 million of 34 investors’ funds to an unauthorised scheme operated by the Nottingham-based accountants, which the regulator believes to have been unlawful.