This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.

FSA takes action against IFA for failing to assess Ucis risk

  • Print
  • Comment

The FSA has banned and fined a Sheffield IFA firm £97,600 after it advised 94 clients to invest over £12m in unregulated collective investment schemes.

The regulator found that between May 2004 and June 2010, Topps Rogers Financial Management did not establish clients’ eligibility to invest in Ucis before promoting the investments to them. Under FSA rules, Ucis cannot be promoted to the public unless they meet specific exemptions, such as if the customer can be shown to be a sophisticated investor.

Topps Rogers also failed to adequately assess and establish customers’ attitude to risk, or carry out adequate research to support its recommendations.
Suitability letters were drafted from a template and were not issued for Ucis fund switches and customer files contained no record that customers had been notified of the fees or commission Topps Rogers would receive, or the investment charges payable.

In November, the FSA said it would ban Topps Rogers partner and adviser Martin Rigney from carrying out regulated activity, and sought to fine him £117,330. Rigney has referred this decision to the Upper Tribunal.

The firm voluntarily varied its permissions in May 2009 to stop arranging new Ucis business.

Topps Rogers was put into liquidation in September and Rigney and his wife were declared bankrupt in November last year.

Evolve Financial Planning director Jason Witcombe says: “We treat these schemes with kid gloves. We look to keep our investment proposition simple so there are no nasty surprises for either us or the clients.”

  • Print
  • Comment

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

Money Marketing Awards 2015
Put your firm forward as the leading practitioner in your field. Adviser and Advertising categories are open to entries - Enter Now.

Have your sayEdit my profile/screen name

You must sign in to make a comment

Fund Data

Editor's Pick


How do you plan to vote at the general election?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments