A rogue IFA has been banned from trading by the industry's new regulator, The Financial Services Authority.
The adviser in question had misled clients by inflating the value of their investments. When the time came to repay clients money, the firm paid it out of other clients money, leaving a £1m shortfall for 41 people over 10 years to November 2001.
The Financial Services Authority has the power to ban rogue advisers and have said that they will do it again.
Our view
We welcome action like this by the FSA to tidy up the Financial Services industry.