Teal blue graphic

FCA bans two individuals from the industry

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.

Mr Kelly

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;

  • Withholding information about fees and charges whilst receiving monies from product providers directly out of clients' investments without their knowledge; and 
  • Falsely certifying copies of clients' identification documents. 

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"

Mr Gray

The FCA found that Mr Gray lacked honesty and integrity and failed to meet the minimum regulatory standards by:

  • Providing investment advice in the knowledge that he had no qualifications or training to give such advice;  
  • Recklessly providing clients with misleading information in relation to costs and associated charges; and
  • Knowingly and dishonestly giving false and misleading pension reports.

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.  

What does this mean for SIPP firms and advisers? 

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:

  • check that all sales put through its sales process are from the firm's recognised advisers and those advisers are sufficiently approved, if required. 
  • consider reviewing the controls it has in place to ensure that only the firm-approved sales are being put through its sales process. 
  • consider reviewing its supervision of advisers to ensure that mis-sales are not taking place. 

For individuals, the FCA's decisions mean: 

  • Advisers have a responsibility to check that the firms or individuals that they work for hold the relevant regulatory permissions. 
  • Refreshing your knowledge of the Fit and Proper Test for Approved Persons which the FCA will also take into account when assessing conduct of all individuals. 

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.

Insights & events View all