The FCA has cancelled an adviser’s permissions for failing to submit his regulatory return.
Derbyshire-based IFA David Stanley Mather ignored “repeated requests” from the regulator to complete his Retail Mediation Activities Return.
According to the FCA’s register entry, Mather was the only adviser at his firm DSM Financial Planning, and advised on investments, mortgages and protection.
The FCA’s decision notice says: “Mr Mather has failed to comply with the regulatory requirement to submit the RMAR. Mr Mather has not been open and co-operative in all his dealings with the Authority, in that he has failed to respond adequately to the Authority’s repeated requests for him to submit the RMAR.
“These failures, which are significant in the context of Mr Mather’s suitability, lead the Authority to conclude that Mr Mather has failed to manage his business in such a way as to ensure that his affairs are conducted in a sound and prudent manner, that he is not a fit and proper person, and that he is therefore failing to satisfy the threshold conditions in relation to the regulated activities for which Mr Mather has had a permission.”
The RMAR forms part of the FCA’s Gabriel reporting system. Advisers have to complete it twice a year, or quarterly if they are capital adequacy directive-exempt or Mifid firms.
The numbers game
According to a Freedom of Information Act request by Money Marketing, since April 2013, the FCA has cancelled the permissions of 17 firms that failed to submit one or more regulatory returns.
Five of these had at least one person approved for the CF30 function required by advisers.
The FCA can levy a £250 administrative fee for late Gabriel submission, but the regulator says it has not fined any firms for late or non-submission through its enforcement team however.
The FOIA response reads “The only action taken for continuing non-submission is cancellation of a firm’s authorisation.”
The FCA was unable to say how many advisers had had to pay the £250 administration fee however due to the time needed to check records manually which exceeded the limits of the FOIA.
The FOIA response adds: “During the relevant period a total of 12,922 invoices were issued, of which 1,391 have been subsequently credited. To determine whether any of those invoices relate to a financial advice firm as defined in your request, we would need to examine manually the individual records of each firm.”