Late last year the Financial Conduct Authority (FCA) took action against four men who were associated with two independent financial advisors, after serious flaws in their conduct were found.
The move follows a review of the two companies - CBW Trustees Limited and CBW Pensions Forensics Limited - by the Pension Regulator, and is a good example of the two regulators working together to tackle failings and to track down assets.
The four men in question had been appointed to advise six occupational pension schemes, but the FCA found that this advice led to the affected schemes unnecessarily moving around their investments, generating over £4 million in commission. The members of the affected pension schemes could also face lower retirement incomes, as pension scheme assets were placed in potentially unsuitable high-risk investments.
To safeguard consumers’ interests, three of the men have been given industry bans; while the fourth has been stopped from performing any roles designated as ‘controlled functions’ by the FCA.
According to the FCA, this reflects its objective of securing appropriate protection for consumers, and its intention to hold approved people to account if they fail to meet the expected standards of integrity and professionalism.
It also reflects the FCA’s widely touted new aggressive approach, which involves the use of both their wide regulatory sanctions and criminal powers.
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