The chief executive of an unnamed advice firm has been issued a warning notice by the FCA over advice relating to unregulated Sipp investments.
In addition, the individual is a shareholder and director of an unregulated introducer firm that promoted the investments.
As a result, the individual benefited from advice fees on the Sipp transfer and commission paid to the introducer by the unregulated investment provider, the FCA says.
Customers were put at “significant risk” of agreeing to transfer into a Sipp that was unsuitable, the regulator adds.
Customers were also not given enough information about the actual and potential conflicts of interests at the firm.
The FCA says the individual failed to check whether the advice firm complied with the requirements and standards of the regulatory system.
Warning notices are not a final decision and individuals are able to present their case to the Regulator Decisions Committee.