A former adviser banned by the FSA for promoting an unregulated collective investment scheme without carrying out proper due diligence is now working for a claims management firm that handles Ucis misselling cases.
MNFA director Richard Rhys was banned from the industry on July 27 for wrongly concluding the scheme he was recommending to clients was not a Ucis. He therefore failed to comply with Ucis promotion rules, including ensuring clients were sophisticated investors.
An update to the FSA register last week says: “Rhys incompetently made misleading statements to investors and failed to take any steps to ensure the suitability of advice to customers.”
The FSA register shows that Rhys left MNFA in January 2009.
Rhys joined claims management company Rebus Investment Solutions in 2010, which specialises in misselling claims relating to “complex investment schemes”, including Ucis.
The company’s website says: “As well as the accountancy and legal experts you would expect, we also use the services of someone who sold these products for a living. This is a true case of poacher turned gamekeeper, and it has enabled us to get quickly to the nub of the problem for many clients.”
A Rebus spokesman says: “On joining the Rebus team, Richard made the company fully aware of his background and the outstanding issues with the FSA.
“At all times in his dealings with or on behalf of our clients, Richard has acted with integrity, diligence, and in the best interests of the client.”
Rhys declined to comment until the FSA publishes its final notice.
Philip J Milton & Company managing director Philip Milton says: “Rhys may argue he may as well help people pursue claims but I find it a bit distasteful.”