Disgraceful Pension Advisers Banned

Disgraceful Pension Advisers Banned.

The financial services industry regulator, the Financial Conduct Authority (FCA) has banned four people from working again in the financial services industry.

The FCA described their actions as “disgraceful” where they ‘pocketed’ £4m for some large company pension scheme transfers.

Essentially, 6 occupational company pension schemes appointed 2 IFA firms and 4 men involved then proceeded to advise on and move around investments inside the pension schemes generating huge amounts of commissions.

It has been reported that the impact of the transferring of pension assets to higher risk pension investments and generating additional charges and commission income for the IFAs has resulted in many pension members now looking at lower pension fund values in retirement.

One of the IFAs involved allegedly was paid £2.1m and in another twist another route was found to filter money out in disguise by paying an “introducers” commission to a taxi firm.

Comment

There appears to be no real accountability here.  Simply banning people from practice is simply not enough.  Based upon any financial advisers hourly rate, and advice liability, you would have to work many hours to generate £4m in fees.

A ban for not offering suitable professional conduct and advise is one thing, but what about the millions lost by people from their pension funds.

This is why our firm confirms in writing to the last penny, exactly what our fees are before you engage our services.