April 17, 2014 / 9:31 AM / in 4 years

BRIEF-FCA bans firm partners on failure to check customer SIPP suitability

April 17 (Reuters) - Financial Conduct Authority (FCA)

* FCA bans partners of firm that failed to consider customer SIPP suitability

* Andrew Rees and Timothy Hughes, partners at 1 Stop Financial Services (1 Stop), have been banned by Financial Conduct Authority

* Two men would have been fined a total of £490,100 but they have instead agreed to pay that amount to Financial Services Compensation Scheme (FSCS) who are investigating claims that redress may be payable to 1 Stop customers

* 1 Stop has now ceased trading and has applied to cancel its FCA permissions

* Also found that partners failed adequately to disclose a conflict of interest, as they were directors and shareholders of EGI, a firm that referred almost a quarter of 1 Stop’s SIPP customers during relevant period

* Mr Hughes also failed in his duty to ensure 1 Stop’s compliance with FCA’s rules by delegating his responsibilities for compliance to an external consultant and failing to provide oversight

* Rees and Hughes failed to comply with statement of principle for approved persons

* Rees, Hughes, will be writing to all customers who are potentially affected to inform them of outcome of FCA’s investigation

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below