The Upper Tribunal has upheld FCA’s decision to ban a former CEO of an adviser network. FCA has banned Charles Palmer and fined him over £86,000 for failing to act with due skill, care and diligence. The network had nearly 400 Appointed Representatives and over 500 registered individuals who, between them, provided advice to around 40,000 customers between February 2010 and December 2012.
In 2010 the then FSA had found Mr Palmer had failed to take reasonable steps to ensure one of the network company’s business was organised in a way that it could be controlled effectively. This was followed by notices against 2 firms of which he was CEO, their compliance officer and their risk director.
In particular, FCA had found the network business model, which Mr Palmer had developed, did not properly manage the risks to the customers of the ARs and the model itself. Mr Palmer had said he was not personally culpable for the failings and claimed they were the responsibility of the other 2 individuals so far disciplined, as well as the Board as a whole. The Tribunal, while noting FCA had at times used unfortunate language, agreed with its determinations and with the ban.