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FCA bans pair over £24m unsuitable pension investments

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The FCA has banned two PCD Wealth and Pensions Management employees for lack of integrity after they invested nearly £24m of customers’ pension funds in unsuitable investments.

Mark Kelly and Patrick Gray will not be fined by the FCA because they were not approved persons at the time of the misconduct. Further investigations are underway.

Between 2008 and 2010 PCD arranged for more than 350 customers to be advised and invested nearly £24m of customers’ funds in potentially unsuitable investments.

It also failed to declare to customers the fees it was receiving from a number of these investments.

Kelly was found to have invested customers’ pension funds in risky investments without their knowledge or consent.

He also received money from product providers taken directly out of customers’ investments without their knowledge and had it paid directly into a bank account in his name.

Meanwhile, Gray provided investment advice to at least five customers despite having no qualifications or training.

Gray was also found to have recklessly provided customers with misleading information in relation to costs and charges and arranged for customers to sign incomplete investment forms despite being aware of the risk that fees could later be added without their knowledge.

He also gave customers pension reports containing false and misleading assurances that they would receive advice on their investments even though, from October 2009, he knew that funds were being invested without their consent or knowledge.

He also misled the FCA in a compelled interview.

FCA enforcement and market oversight director Mark Steward says: “These two individuals misused pension funds, endangering the retirement incomes of hundreds of people. While further investigations continue, the FCA considers it necessary to prohibit them to help protect consumers.”

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Comments

There are 11 comments at the moment, we would love to hear your opinion too.

  1. Mark Kelly and Patrick Gray will not be fined by the FCA because they were not approved persons at the time of the misconduct”.

    If somebody was not an approved person at the time I am not sure that a ban is going to work.

    Importantly, where does the FSCS fit in with the whole sorry affair. And what firm would allow this.

    Well done FCA but I think that Sipp provider Hornbuckle Mitchell need a big pat on the back.

  2. They should bring back the stocks.

    Liquidate these people’s assets to pay back as much as possible then have them sitting in the stocks twelve hours a day for the rest of their miserable lives.

    Ian Coley

  3. Philip Milton 9th June 2016 at 2:20 pm

    I seemed to recall that such misdemeanors are within the criminal law. What actions are the Crown Prosecution Service bringing against them?

    What sort of message does this give… banning them from things they weren’t authorized to do…. ooooh!

  4. Robert Wilson 9th June 2016 at 4:08 pm

    Exactly my thoughts Philip. We are better off not being registered with the FCA then at the most, all we get is a slap on the wrist. Why is there no criminal prosecution for fraud here?

  5. Barney Cooper 9th June 2016 at 5:48 pm

    OMG. Pathetic. White collar crime does pay.

  6. So let’s not bother being approved then would save everyone a headache. What a joke this country has become I suppose it’s no different with the ICO ASA etc etc etc don’t bother registering?? What on earth is the purposes of a regulator if it has no enforcement unless you’ve registered with it … Angry

  7. Just to confirm….this is not me! Im the FCA registered one. Now I need to explain to my family that I haven’t been a naughty boy!

  8. We are currently being litigated against by a client over a product one of our advisers allegedly didn’t recommend! All because we are regulated. Go figure!

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