Financial advice group DBS Financial Management was fined £100,000 by the City watchdog yesterday for misleading advertising.
The fine, which is the first to be issued by the Financial Services Authority (FSA) for advertising, related to a supplement for a highly complex ISA which was distributed in newspapers in June 2001.
The FSA said DBS, which is now owned by Misys Life and Pensions, had not presented a balanced picture of the risks involved in the investment and had failed to ensure the advert would be understood by the newspapers' readers.
The 24-page colour brochure advertising the Protected ISA claimed the product offered 100 per cent capital security over five years, indicating all the initial money invested would be protected.
But in reality this was only the case when the investment matured on its fifth anniversary.
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