Eastern Western Motor Group Limited

Activities and protection

What they can do, and how you are protected

• Give regulated advice FSCS may apply
  A claim for unsuitable advice is itself FSCS-protected, up to the limit that applies to the product you were advised on.
• Manage or trade investments FSCS may apply
  Eligible investment and pension claims are typically FSCS-protected up to £85,000 per person, depending on the product and your circumstances.
• Sell or arrange insurance FSCS may apply
  Eligible insurance claims may be FSCS-protected, often 90%, or 100% for compulsory or long-term cover.
• Lend or arrange credit No FSCS cover
  Consumer credit is not covered by the FSCS, so there is no compensation scheme if the firm fails.

Check your FSCS cover →

Complaints: You can refer a complaint about this firm to the Financial Ombudsman Service for free, whichever activity it relates to.

Track record

Action taken against them

1 public censure in 2006. This is part of the official register record and is worth reviewing before going ahead.

• Publicly censured on 20 December 2006

  On 20 December 2006 the FSA imposed a Public Censure on Eastern Western Motor Group (EWMG) in respect of breaches of the FSA Principles and Rules which occurred between 14 January 2005 and 30 June 2006 (the relevant period), in relation to their selling of Payment Protection Insurance (PPI), alongside vehicle finance agreements. The following FSA Principles are relevant: 1. FSA Principle 2 (due skill, care and diligence) 2. FSA Principle 3 (management and control) 3. FSA Principle 7 (clear, fair and not misleading) The following rules are also relevant: 1. in the part of the FSA Handbook (the Handbook) entitled Senior Management Arrangements, Systems and Controls (SYSC), SYSC 2.1.1R and SYSC 3.2.20R: 2. in the part of the Handbook entitled Insurance: Conduct of Business (ICOB) 5.5.14R; and 3. in the part of the FSA Handbook entitled Training and Competence (TC) TC2.3.1R; and TC2.7.5AR. EWMG agreed to settle at an early stage of the FSA's investigation and the decision to issue the Final Notice was taken by Executive Settlement Decision Makers on behalf of the FSA. The failings relate to EWMG's failure to conduct its regulated business with due diligence; failure to take reasonable care to organise and control its affairs responsibly and effectively; and failure to pay due regard to the information needs of its customers and communicate information to them in a way that was clear and fair. The FSA views EWMG's failings as serious because: 1. there was insufficient apportionment of compliance responsibilities among EWMG's directors and senior managers and no delegation of clear and defined compliance responsibilities to ensure adequate monitoring and control; 2. the firm did not act in a timely and effective manner when compliance failings were identified; 3. there was inadequate provision for the training and monitoring of sales staff and as a result of this failing, customers were placed at increased risk of being sold inappropriate PPI policies. A small number of customers were not provided with the total cost of the PPI cover and may have been disadvantaged; 4. there was inconsistent and inadequate record keeping in relation to customer files where PPI policies had been sold. With limited or no information to indicate what customers had received and in what format, senior managers had no means of ensuring staff were conducting compliant sales. EWMG mitigated the seriousness of its failings by showing that only 199 PPI policies had been sold in the relevant period and by taking the following measures: 1. engaging an independent consultant before the matter was known to FSA, to review its systems and controls and assist in the implementation of changes to its compliance arrangements including its systems, training and competence regime and sales process; 2. committing to a customer contact exercise in which each of its customers that effected PPI were provided with a statement of the total cost of the premium; 3. co-operating fully with the FSA and moving quickly to agree the facts and efficiently resolve the case.

Common questions

Frequently asked questions