On 9 June 2016, the FCA published two decisions to give lifetime bans to two individuals on the basis that they lacked honesty and integrity. Mr Mark Kelly, trading as PCD Wealth and Pensions Management and Mr Patrick Gray who worked for Mr Kelly were both banned for lacking integrity.
The FCA found that Mr Kelly lacked honesty and integrity and failed to meet the minimum regulatory standards by:
Investing clients' pension funds in Portfolio Bond and Unregulated Collective Investment Schemes (UCIS) without their knowledge or consent and without any regard for suitability;
The FCA found that Mr Kelly's failing and actions were "calculated, prolonged and dishonest" and Mr Kelly "would have been aware of the clear risk that consumers would suffer a loss"
The FCA found that Mr Gray lacked honesty and integrity and failed to meet the minimum regulatory standards by:
In addition Mr Gray intentionally misled the FCA in compelled interviews by falsely stating that he did not provide clients with advice and that the SIPP forms he provided did disclose fee information.
The fact that neither Mr Gray nor Mr Kelly were Approved Persons at the time of their misconduct did not prevent the FCA from taking action and imposing lifetime bans.
For firms, the FCA's decisions mean they should:
For individuals, the FCA's decisions mean:
The FCA continues to give lifetime bans to those individuals who are not approved despite the regulator not being able to impose a fine on those individuals.
This publication is intended for general guidance and represents our understanding of the relevant law and practice as at June 2016. Specific advice should be sought for specific cases. For more information see our terms & conditions.
On 12 October 2018, the FCA published a Guidance Consultation (GC 18/4) on the Senior Managers and Certification Regime on statements of responsibilities (SoRs) and responsibilities maps (which apply to enhanced firms).