- within Wealth Management, Technology and Employment and HR topic(s)
- with Inhouse Counsel
- with readers working within the Law Firm industries
UK
FCA: The Upper Tribunal upholds FCA ban on two individuals involved in pension transfer advice but reduces fines
The FCA has announced that the Upper Tribunal upheld its decision to ban two individuals from working in financial services. The Tribunal agreed that both acted dishonestly by providing a backdated appointed representative (AR) agreement to the FCA.
The Tribunal found that the individual who was the AR falsely claimed she had given advice to some pension schemes before she had done so. Also, that she had failed to take proper care when giving pension transfer advice. Meanwhile the director was found to have failed to properly oversee her work.
The AR advised about 92% of her clients to move out of defined benefit pension schemes between April 2015 and June 2017. This led to more than £126 million being transferred, including when it was not in clients’ best interests.
The FCA had based both fines on the finding that all of the AR's advice breached regulatory requirements, but the Tribunal ruled that the fines should reflect its finding that 18% of her clients received unsuitable advice. It also ruled that only the income the director earned from his relationship with the AR should count towards his fine.
The Tribunal agreed fines were appropriate but reduced these to £41,230 from £399,817 for the AR and £16,046 from £270,646 for the director.
FCA: Climate adaptation and resilience
The FCA has published a page, Climate adaptation and resilience, which contains information for regulated firms on how physical risks from climate change, such as flooding, may impact the property insurance and mortgage markets and how the FCA can help. The FCA has identified five key risks to consumers and markets from physical climate change including:
- reduced access to insurance;
- insurance markets function less effectively;
- consumers find it harder to obtain mortgages;
- existing homeowners face higher costs and less choice; and
- markets find it harder to accurately price climate risk.
The FCA explains the various engagement and support options, including:
- engagement and collaboration;
- Regulatory Sandbox;
- innovation services; and
- industry guidance.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]
