The regulator has banned Mark Abley of County Capital Wealth Management Ltd (in liquidation) (CCWM) from providing any advice on pension transfers.
In a statement it said Abley will also pay £106,100 to the Financial Services Compensation Scheme (FSCS) rather than the FCA, to contribute towards the redress owed to CCWM’s customers.
The Financial Conduct Authority added if he fails to pay this amount or any part of it, the regulator will enforce this amount as a fine.
Between April 2015 and February 2018, CCWM advised 575 people to transfer out of their defined benefit pension schemes – including almost 150 members of the British Steel Pension Scheme.
According to the FCA’s final notice, Abley was responsible for this advice, over half of which (56%) failed to meet the required standards and showed a lack of competence.
He received a financial benefit of at least £60,000 for providing this advice.
The FCA went on to say Abley did not obtain the information needed to make a suitable recommendation or properly assess whether the customer could understand and bear the financial risks of transferring their guaranteed pension.
He failed to provide evidence to show that the transfers were in his customers’ best interest.
There were also errors in the calculations used to compare customers’ existing pension schemes with the schemes it was proposed they transfer into.
FCA joint executive director of enforcement and market oversight Therese Chambers said: “Mr Abley’s incompetence meant that he failed to give customers the advice they needed to make a significant decision about their retirement.
“This included hundreds of people who were dealing with the uncertainty around the British Steel Pension Scheme. He earned fees while putting their retirement money at risk. It is only right that he contributes to the costs of compensating these customers.’
As of 14 March 2023, the FSCS has upheld 53 pension transfer claims against CCWM and paid out over £2.1m in compensation to customers of CCWM.
Any customers who were advised to transfer should contact the FSCS to see if they are owed redress.
So, he advised 575 people to transfer from DB schemes and earned at least £60,000. That means an average fee of circa £105 per transfer and he’s going to pay the FCA £106,100. No wonder so few people are left in the DB transfer market, there’s just no money in it!!
Is this an order for Abley to pay from his personal resources £106,100 to the FSCS? If so, it’ll send a chill down the spines of Ltd Co. directors.
At only £400 per client(if £60,000 was from British Steel clients) no wonder the advice was poor & company liquidated. See his next venture has just applied to cancel fca registration too, funny how FCA don’t spot this phoenixing still, amazing really!!
I think the Regulator is missing the point here,,,, the question to be asked is, Where was the PI provider in all this, the renewal application would have clearly indicated exposure to DB schemes, and It failed to report such to the regulator!!!! They took the premium and get off scot free!!!!
No they don’t. Elsewhere it’s been reported that the company’s PI Insurers are providing cover of £1.8m.
And since when are PI Insurers under any obligation to report their policyholders to the FCA for anything?
Imagine how much the Vigilantes at the FCA would need to pay for their “guidance or Regulation” and their part played for and on behald of the Banks and their takeover of the industrial insurance companies such as Edinburgh’s Scottish Widows ? where are these ex administrators and bankers now ? B of E NWG etc etc.,No doubt like Johnston someone will claim he did some thing good, but at the cst to the country, and at the expense of the sell Insurance industry sell off!