FCA warns 'reckless' pension transfer specialist of action

The FCA has issued a warning notice to a pension adviser it has branded “reckless” after they gave unsuitable advice to customers to transfer out of their DB scheme over a four year period. The regulator has not identified the individual or the firm and told Financial Planning Today that this was because there had been no final decision yet and the person has the right to make representations to the regulatory decisions committee. The pension transfer advice was given over a four year period from 2015 to 2019. It appears from the warning notice that the individual also agreed a settlement with clients but failed to inform the FCA. The watchdog said the unnamed person acted as a CF30 (customer) and pension transfer specialist (PTS) and was approved to perform both the CF1 (director) and CF10 (compliance oversight) functions, with overall responsibility for the firm’s compliance with regulatory requirements and standards. The FCA said it considers that the individual breached Statement of Principle 1 of the FCA’s Statements of Principle for Approved Persons when carrying out their controlled functions. It said in a statement published yesterday: “In their role as a CF30 and PTS the individual was reckless and thereby acted without integrity.” It said the person made personal recommendations despite having failed to obtain from customers adequate information relating to their financial situation. The person also failed to adequately assess customers’ attitudes to investment and transfer risk and approved suitability reports which failed to provide their customers with sufficient information from the transfer value analysis to enable them to be able to make an informed decision about whether to transfer their pension. The FCA added: “During the relevant period the individual acted dishonestly in relation to their financial affairs, agreed a settlement in respect of the dishonest conduct and failed to notify the FCA of the same, breaching Statement of Principle 4.” It said the advice provided by the unnamed individual failed to comply with regulatory standards. The person was given a warning notice on 16 November that the FCA was “proposing to take action” over the issue. The FCA said the individual could be fined or banned.

FCA warns 'reckless' pension transfer specialist of action

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