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FSA bans adviser for quality and compliance failings

The FSA has banned Worcestershire financial adviser Norman Mark McCance for quality, suitability of advice and compliance failings at his firm, Penn Financial Services Unlimited.

The FSA found that McCance, who specialised in investment bonds, lacked competence and capability. As Penn’s sole director he also failed to ensure that the firm met FSA compliance standards.

The regulator found that McCance acted recklessly in arranging transactions in terms of suitability, particularly in relation to advising customers to re-mortgage to raise funds to invest in investment bonds. The FSA says the bonds were unlikely to generate sufficient income or capital to repay the mortgages.

He also failed to provide written loss guarantees to individuals who complained about the performance of their investment bonds and failed to record sufficient and accurate information about customers’ personal and financial circumstances.

McCance also completed mortgage applications with inaccurate information and conducted pension transfers outside the scope of Penn’s permission.

As a director, McCance failed to put in place adequate and effective compliance arrangements, monitor or review the firm’s business through compliance checks or improve the firm’s compliance resources.

FSA head of retail enforcement Jonathan Phelan says: “It is vital that approved persons demonstrate the necessary degree of competence and capability when providing investment advice and overseeing compliance by a firm. Those who do not demonstrate the necessary degree of competence and capability face the risk of being prohibited from the financial services industry.”

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