From: RegTech Analyst
The Financial Conduct Authority has commenced civil proceedings in the High Court against two individuals on charges of having made unsuitable defined benefit pension transfer advice.
The regulator alleges that the to individuals’ actions caused consumers to exit defined benefit pension schemes when it was not in their best interests.
As part of those proceedings, an interim injunction has been secured which freezes the assets of the two individuals up to the value of £7m, pending a further hearing.
The regulator also claimed that one of the individuals breached FCA requirements by undertaking a course of conduct which resulted in the removal of assets, leaving it unable to meet potential liabilities for unsuitable advice. This in turn allegedly enabled the man to retain the significant profits that accrued from the provision of that advice, and from ongoing fees.
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