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FCA ban for pension transfer IFA upheld in court

The FCA’s decision to ban former Tailormade Independent Limited chief executive Alistair Burns has been upheld by the Upper Tribunal.

Between January 2010 and January 2013, Tailormade gave advice to 1,661 customers who were considering transferring or switching their existing pension funds via Sipps into unregulated investments, such as green oil, biofuels, farmland and overseas property.

The Tribunal has ruled that the overseas investments were indeed “inherently risky” and that the customers were given unsuitable advice.

Burns has been handed a £60,000 fine –  almost four times less than the £233,600 the regulator first called for in December 2016.

Customers invested a total of £112m into the alternative investments under recommendation from Tailormade.

The regulator says Burns benefited significantly though his dual position as director and shareholder of an unregulated introducer also operating under the Tailormade banner.

Compensation totalling more than £55m has already been paid out to customers by the Financial Services Compensation Scheme.

FCA executive director of enforcement and market oversight, Mark Steward says: “Mr Burns failed to ensure that Tailormade managed its conflicts of interest. Our action sends a strong message that failing to manage conflicts of interest fairly and disclose them clearly is completely unacceptable.”

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. He’s made a fortune,gets fined £60,000 and the innocent have to chip in for the £55m.The FCA spokesman believes they are ‘sending out a message !!
    1,661 schemes went unfetered with the regulator asleep at the wheel again!

  2. Meanwhile there are couples divorcing and people without any pensions left….. do they not take account of the ‘human’ cost of these schemes? I know some people are blinded by greed, but the majority are just ‘sold’ to by good salesmen who reap the rewards for being good at selling and not much else… This is so bad for the conscientious and reliable advisers out there – a bad reflection on the profession that is.

  3. Bethell Codrington 2nd August 2018 at 4:30 pm

    £112m invested in alternatives that pay up to 6% commission, so the fine is about 1% +/- of earnings.
    Definite warning across the scammers bows….

  4. I was going to make exactly the same comment as Peter taylor, almost word for word in fact, once I had edited out the expletives!

  5. I agree Peter, how did 1661 schemes slip under the radar, perhaps the regulator should be fined for failing to carry out basic regulation, but, whilst the have advisers to pay for their mistakes why should they care?
    ,

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