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FSA failure rumours are ‘untrue’

The head of Eastern Western Motor Group has hit back at “completely untrue” rumours that the business recently failed an FSA audit.

Keith Huggins says the company has not failed anything.

“The FSA is doing a round of audits in Scotland to see how the regulations are implemented,” says Huggins. “They’ve been in to a number of businesses, but it’s not a pass or fail process. I’m sure that everybody has something that can be improved upon.”

The claims were made by sources at a consultancy that advises businesses on FSA compliance. Eastern Western Motor Group specializes in premium brands such as Audi, Mercedes-Benz and Lexus.

The FSA says it will not comment on specific cases. It looks at everything from how insurance products are sold to the way a company is run.

“With companies that are not financial institutions it is often how the product is sold that is the problem,” says Robin Gordon Walker, press officer at the FSA.

“If this happens, or there are other irregularities, then the first thing we do is work with the company to put things right.”

Gordon Walker adds that the FSA will only contemplate enforcement action if the problem cannot be solved any other way.

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