Civil proceedings have been brought to the High Court by the Financial Conduct Authority (FCA) against former advisers Paul Steele and Jacqueline Foster, which includes an interim injunction freezing both of their assets up to the value of £7 million, pending a further hearing.
The FCA is asking the Court for a reimbursement order requiring Mr Steel to compensate consumers from personal wealth who suffered losses because of receiving unsuitable pension transfer advice.
It is alleged that Estate Matters Financial Limited which are in liquidation (EMF) contravened various requirements under the Financial Services and Markets Act 2000, in which they provided unsuitable defined benefit (DB) pension transfer advice.
Mr Steel co-owner and director breached FCA requirements by undertaking a course of conduct which resulted in the removal of EMF’s assets, leaving it unable to meet potential liabilities for unsuitable advice, which enabled Mr Steel to keep significant profits that accrued from the advice given and from ongoing fees.
An injunction was obtained against Ms Foster on the basis she may be holding and or controlling the assets owned by Mr Steel.
No trial date has been set yet.
We cannot comment on the case but we are tired generally of seeing rogue advisers take advantage, bank profits, fold due to mis-selling, leave the debts for the 'good people' in our industry to pay for via increased insurance premiums and payments to the compensation scheme.