The FCA’s Upper Tribunal has upheld the regulator’s decision to ban financial advisers Richard Fenech and Heather Dunne from working in financial services.
The Tribunal agreed that both acted dishonestly by providing a backdated appointed representative agreement to the FCA.
The Tribunal found that Ms Dunne falsely claimed she had given advice to some pension schemes before she had done so. Also, that she had failed to take proper care when giving pension transfer advice. Meanwhile it said Mr Fenech failed to properly oversee her work.
Ms Dunne advised about 92% of her clients to move out of defined benefit pension schemes between April 2015 and June 2017. This led to more than £126m being transferred, including when it was not in clients’ best interests.
The FCA had based both fines on the finding that all of Ms Dunne’s advice breached regulatory requirements. The Tribunal ruled that the fines should reflect its finding that 18% of Ms Dunne’s clients received unsuitable advice. It also ruled that only the income Mr Fenech earned from his relationship with Ms Dunne should count towards his fine.
Therese Chambers, the FCA’s executive director of enforcement and market oversight, said: “We welcome the Tribunal’s ruling, which supports our decision that Mr Fenech and Ms Dunne are unfit to work in financial services.
“The Tribunal agreed that the FCA must be able to rely on those it regulates at all times, including in periods of stress and high pressure. These individuals failed that test and breached the trust placed in them.
“Dishonesty and negligence have no place in our industry, and we will continue to take action against those who fall short of our standards.”
The Tribunal agreed fines were appropriate but reduced these to £41,230 for Ms Dunne and £16,046 for Mr Fenech.
Ms Dunne traded as an independent financial adviser under Heather Dunne Independent Financial Adviser (HDIFA) and was a pension transfer specialist. HDIFA was an appointed representative of Financial Solutions Midhurst Ltd (FSML), which was owned and run by Mr Fenech. FSML and HDIFA are both in liquidation.
Ms Dunne and Mr Fenech have 14 days from the date of the Upper Tribunal’s decision to appeal.
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