The FCA has spent a total of £320,000 in legal fees pursuing a case to ban former TailorMade Independent chief executive Alistair Burns.
The costs account for work on the case between August 2015 and October 2018, a Freedom of Information request by Money Marketing shows.
An additional £7,500 was spent between April and July 2015 on shared legal costs relating to the cases of Burns and another former TailorMade director, Robert Shaw, while £8,000 was spent between June 2014 and March 2015 on share legal costs for cases against Burns, Shaw and two other former TailorMade directors.
A total of 4,777 FCA man hours were spent on Burns’ case alone between August 2015 and October 2018.
An additional 291 hours of work were split between the four directors’ cases.
The FCA outlined to Money Marketing that £70,968 of the total spent was on external legal costs, with the rest being used to fund its in-house legal team.
Essex Court Chambers and Blackstone Chambers were instructed on the case, costing £2,730 and £68,238 of the total spent on Burns’ case respectively.
The number of man hours spent by external legal staff were not recorded by the FCA.
Burns is the only director of the four to take the FCA’s initial decision to ban him to the Upper Tribunal by mounting an appeal.
The case was upheld in August this year and saw Burns receive a £60,000 fine – almost four times less than the £233,660 the FCA originally tried to get in 2016.
At the centre of the ruling was the conduct of the four directors 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 over the three years.
A total £112m was invested in alternatives by customers, through which the regulator says Burns received significant financial benefit working as both a director and as a shareholder of an unregulated introducer operating the under TailorMade brand.
Companies House records now list Burns as an active director at Cheshire-based support services firm Talking Wills. He was also a director with another now-dissolved firm, Talking Probate, based at the same address.
Shaw is currently listed as the secretary of a dormant Edinburgh-based firm, LAPR Management, where Burns is also listed as a director.
As of 1 August this year, £55m in compensation had been paid out to TailorMade customers by the Financial Services Compensation Scheme.