FSA bans IFA for system and control failings
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The FSA has banned Martyn Powsney, the former director of IFA firm Powsney & Co Ltd, from holding positions of significant influence in any FSA authorised firm.
The regulator says Pownsey failed to put in place systems and controls to ensure that customers received suitable advice and failed to take sufficient remedial action.
Following an initial visit in 2007, the FSA required Powsney to take action to rectify “serious failings” at Powsney & Co Ltd but, despite employing a compliance consultant to assist with the remedial work, he failed to take prompt, adequate action.
A subsequent assessment by the FSA in 2008, as part of its assessment programme for small firms, identified similar concerns to the 2007 visit.
The FSA has concluded that Powsney failed to establish appropriate systems and controls at the firm, demonstrate that the firm was providing suitable financial advice and undertake remedial action required by the FSA.
Powsney & Co Ltd is currently in liquidation and is no longer authorised to conduct regulated business.
FSA head of department, enforcement and financial crime Tom Spender says: “Powsney lacked competence and capability. Even when FSA staff visited the firm in 2007 and 2008 and set remedial action, Powsney failed to implement the required changes.
“It is vital that those running firms have the necessary competence and capability to put systems and controls in place to ensure that suitable advice is given and customers are treated fairly. Individuals who do not have these qualities are a risk to consumers and face being banned.”
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Readers' comments (14)
Anonymous | 1 Apr 2010 3:30 pm
The FSA seems to find lots of time to visit IFA's and ban them for failings, which i have no problem with, however, why can they not find the time to regulate the financial services within the banks.
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Julian Stevens | 1 Apr 2010 3:30 pm
Fair enough.
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Robert Rice | 1 Apr 2010 3:43 pm
What about the ban....
Oh, too slow
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Pissed Off IFA | 1 Apr 2010 3:47 pm
Hi Julian, what's fair enough. I wonder if all your bits and pieces are above reproach. What the report fails to state is whether or not Powsney and Company's clients have been ripped off.
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Darren Reynolds | 1 Apr 2010 4:45 pm
After FSA visits, Martin employed a compliance firm to go through his files and assess the need to revisit clients. The review cost a fortune, took an age and found no clients had been given bad advice. He put a second oversight in place and joined True Potential to provide a back office system for his information and speed up response time for infromation. Due to the timescales and poor record keeping he is at fault, but I guarantee he is not a bad IFA.
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Bob Perry | 1 Apr 2010 4:52 pm
It does appear that the FSA finds it easier to sanction small IFAs, and it (the FSA) has patently failed to regulate the banks. It is now shutting the stable door after the horse has bolted in terms of looking to regulate products before they come to market. However, on a separate point, will those of us still trading be expected to pick up the tab for Pownsey & Company's clients through an increased FSCS levy.
PS. Why are so many bloggers afraid to give their names?
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Robert Rice | 1 Apr 2010 5:15 pm
To pissed of IFA - which report fails to say whether the clients were ripped off? The Money Marketing report, or the 9 page final notice on the FSA's website (which presumably you've read)?
Is this the standard of advice you give your clients? It doesn't matter whether they receive suitable advice, just whether or not they wee ripped off? I suspect you are going to be forced to leave a job you love and have done for 20 years in 2012 because you are too old to do exams, etc etc
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Anonymous | 1 Apr 2010 10:28 pm
Robert Rice, you don't seem to appear on the FSA register?
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John | 2 Apr 2010 9:31 am
It is obvious that the FSA have a directive to rid the industry of the small IFA. Pownsey and Co seemed to be trying to find a remedy from other comments. I have learnt through a few ex colleagues in the Banking industry that mal-practice is rife and the pressures placed on staff to meet targets is taking a toll on their health.
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Gerry Cooper | 2 Apr 2010 5:29 pm
To Robert Rice -
Off topic, but that's an ageist comment!
Not appreciated!
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