The FCA put 42 firms under supervision over advice they gave to invest in collapsed life settlement company Keydata, a Freedom of Information Act request has revealed.
Only five of these firms were the subject of any enforcement action, however.
Among them were Sesame, which was fined £6m for failing to ensure the suitability of Keydata investments, AWD Chase de Vere, which was fined £560,000 for failing to research the products properly, and Norwich and Peterborough Building Society, which received a £1.4m fine, also for suitability failings.
The FCA did not provide information on how the other 37 firms were treated, except that “private warnings” were included within the supervisory work.
The regulator said information on any skilled person reviews, dawn raids or attestations – where firms agree to take an action required by the regulator – was not held in a “readily extractable format” so would breach the cost limits of the Act.
The FOI suggests the Financial Services Compensation Scheme started targeting a far greater number of IFAs than the FCA, when it went after 820 advisers who recommended Keydata-distributed life settlement products three years after the company entered liquidation in 2009.
The FCA and Keydata founder Stewart Ford are currently in the early stages of an appeal against Ford’s record £75m fine, more than 20 times the previous highest fine for a single individual by the regulator.
Keydata issued bonds through special purposes vehicles incorporated in Luxembourg. The funds raised through these were then invested in a portfolio of US life insurance policies and cash, but the company failed after incurring tax debts from mislabelling its products as having Isa status.
For a full timeline of the Keydata saga, click here.