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FCA seeks to ban and fine former Financial Ltd chief £87k

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The FCA is seeking to ban and fine Financial Ltd chief executive Charlie Palmer £86,691 over failing to ensure appointed representatives gave suitable advice to around 40,000 clients.

Palmer has referred the matter to the Upper Tribunal.

The regulator has also fined former Financial risk management director Paivi Grigg £14,807 for failing to ensure the network’s approach to managing risk was appropriate.

In the decision notice against Palmer, the FCA says Palmer failed to take adequate steps to ensure risks were managed effectively.

The regulator says Financial’s business model allowed ARs and individuals a high level of freedom and flexibility, putting around 40,000 clients at “significant risk” that they would receive unsuitable advice. The regulator says this includes high risk products such as unregulated collective investment schemes.

The FCA says as a result it is looking to fine Palmer £86,691, as well as banning him from holding senior management roles in regulated financial services.

Palmer has previously been investigated by the FSA in 2009 and fined £49,000 by the regulator in 2010 over the risk of unsuitable pension switching advice.

A past business review into pension switching at Financial is ongoing and being carried out by parent company Tavistock Financial, which acquired the Financial network in February.

In July 2014 the FCA estimated that 80 per cent of Financial Ltd’s Ucis customers may have received unsuitable advice after finding “systemic weaknesses” in the network’s systems and controls.

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Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. Well, I don’t know all the ins and outs of this affair so I can only comment with due caution, but I must say that Charlie never struck me as a bad guy and if he deserves this kind of treatment I’ll be unpleasantly surprised.

  2. Total BS. What about the millions of Investors put at risk every minute of every day by British based banks.The FCA should stop creating copy picking on Individuals and get out there and SUPERVISE the banksters.

  3. How many actually DID receive unsuitable advice.

  4. I’m certain that this fine and this issues facing Financial Ltd are entirely unrelated to the regular videos Charlie Palmer used to post on his website that were highly critical of the FSA. They are clearly entirely unrelated.

  5. Posting videos on his website that were highly critical of the FSA was downright flipping stupid ~ like dangling your legs over the side of a boat surrounded by sharks. What did he expect? Idiot.

    • That would make me an idiot to then Julian as I will openly criticize the F-pack where I think them wrong as my principles come before the dictats of the F-pack. If I think they or FOS are wrong or injustice I will say so, but when they do a good job, I will say so too. If they want yes men, then employ us. I am no yes man and whilst I was very good at taking orders in the Army, an illegal order is an illegal order and if you act on it, you are as guilty as your senior giving the orders.
      I haven;t met 1 single FCA staff member willing to publicly be critical or disagree with their employer, so either they are perfect or they subjugate their principles for their jobs. Even Rory Percival, who I have a lot of time for, still toes the party line when his face sometimes is telling you something different or his refusal to comment.

  6. I think there’s a rather major difference between your position, Phil, and that of Charlie Palmer. I’m not shy either of criticising the FCA when I think it’s in the wrong, though were I in Charlie Palmer’s position, had already been fined £49,000 and told to get my house in better order, it would be suicidally stupid to provoke the FSA by posting online videos expressing to the world the opinion that they’re all a bunch of bozos. You’re not seriously suggesting that you’d do that, are you?

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