FCA bans 5 directors for causing losses to pension customers

The FCA has banned five directors of financial advice firms from working in financial services, after they caused significant losses to pension customers. The bans, and fines of over £1m, follow findings by the Upper Tribunal that the five directors had failed to act with integrity, having either acted dishonestly or recklessly.

The financial advice firms provided unsuitable advice causing customers to place their pensions in high-risk financial products in self-invested personal pensions in which an unauthorised firm had a significant financial interest. These customers had been referred to them by the unauthorised firm which was also involved in designing the pension advice process used by these firms.

The scheme caused significant losses of over £50 million to c.2,000 consumers who have since been compensated by the FSCS.