The Financial Conduct Authority (FCA) has requested that five directors of firms involved in handing out unsuitable pension transfer advice be heavily sanctioned.
The regulator wants over £1 million in fines to be applied to the directors of Financial Page Ltd (FPL), Henderson Carter Associates Limited (HCA) and Bank House Investment Management (BHIM) due to “advice provided in their name”.
Over 2,000 customers of the firms invested approximately £76 million of their pension assets, according to the FCA. As it stands, the Financial Services Compensation Scheme has given £26.8 million to 1,106 of the customers involved.
The FCA said: “The FCA considers that FPL, HCA and BHIM had little meaningful oversight and involvement in the advice provided to customers in their name. They adopted a pension review and advice process which involved outsourcing important functions to unauthorised third parties.”
Furthermore, the regulatory body has advised that the directors are stopped from undertaking any functions regarding regulated activity.