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FCA investigates introducers over £258m pension transfers

Umbrella-Storm-Clouds-Warning-Bad-Weather-700x450.jpgThe FCA has confirmed it is currently investigating four unauthorised firms and four unauthorised individuals in relation to financial introducers for pension products.

A Freedom of Information request from March released this week asked the FCA to provide details of its current investigations and their wider affects.

The watchdog says the total value of pension funds transferred by those under investigation adds up to £258m.

In total, 6,000 consumers have been targeted by those in this current investigation.

Introducer firms in the UK do not require FCA authorisation if they are not offering investment advice directly and are passing the consumer on to a regulated financial adviser.

The watchdog says: “If an unauthorised introducer is offering investment advice, then they are likely to be carrying on regulated activities in contravention of the general prohibition set out in the Financial Services and Markets Act.

“However, absent evidence of unauthorised introducers acting in breach of the general prohibition, the FCA’s focus is likely to be on the regulated entities who have provided advice and facilitated the transfer or switching of pensions.

“The FCA is investigating a significant number of regulated firms in this respect.”


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There are 6 comments at the moment, we would love to hear your opinion too.

  1. I gave the FCA chapter and verse of an unregulated introducer not only acting in contravention but also committing fraud by getting an investment approved through misrepresentation.

    100 investors lost £3.5m

    Everything was in writing by email so a real no brainer to prove……. the FCA said they’d make a note

  2. They must be in on it then as no other reason

  3. It has to be said, we hear and read, week after week, month after month, year after year, small groups of people causing, wide spread damage, and yet again here we are, 4 firms and 4 individuals.
    And proof (Paul Moll, Neil Liversage, amongst others) we are whistle blowing & feeding bad practice to the FCA.

    The FCA are quite happy, just keep letting the train wrecks happen, with scant regard for the consumers pockets, it seems both the ones investing and the ones who are clients of good advisers, have to pick up the FSCS tab after…..

    I say the FCA is a oil slick stretching the coast from Lands End to John O’Groats & back again, a ecological and financial disaster !

  4. Thomas Frodsham 29th May 2019 at 5:43 pm

    The problem is genuine advisers with no complaints are lumped in with this and are now facing crippling unavoidable p I insurance bills, which in turn their clients will have to fund

  5. Julian Stevens 29th May 2019 at 6:03 pm

    Should that not read “in the absence of…”?

    That aside, isn’t the FCA’s focus already on the regulated entities who have provided advice and facilitated the transfer or switching of pensions?

  6. It is the hypocrisy that annoys me.

    If a regulated firm is investigated then it is down to the firm to prove beyond reasonable doubt that they are acting with probity, not merely honestly, but with client best outcomes in mind.

    However for an unauthorised introducer then all of a sudden it seems the barrier for action is not so much a smoking gun, as a smoking gun, pile of corpses, and the guilty party yelling ‘it was me, me me!’

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