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FSA bans adviser for unauthorised secondhand sales

The FSA has banned Yorkshire financial adviser Kevin Allsop from working in the financial services industry after selling secondhand endowment policies without authorisation.

The regulator has evidence that Allsop bought at least 55 secondhand endowments and sold 50 of them to 50 different people between 1994 and 2001. It says that most of the polices have not yet matured but that Allsop&#39s overcharging means that his clients face either lower returns or a loss.

While the FSA points out unauthorised investment business is a criminal offence, it has decided to ban Allsop rather than press for prosecution.

As well as unauthorised Tep trading, the FSA found Allsop made unauthorised use of his clients&#39 money, including opening client accounts without their knowledge. He also repeatedly attempted to mislead the FSA about his activities.

Between 1998 and 1991 he was an appointed representative of Allied Dunbar, then became an AR of Countrywide Independent Advisers until 1998 – but this did not cover his Tep dealings.

He then traded without authorisation under the banner of Allsop Financial Services and Allsop Mortgage Services in West Yorkshire.

FSA director of enforcement Andrew Proctor says: “Allsop&#39s conduct showed wilful disregard for the law designed to protect consumers and became more serious as time passed. He is a severe risk to consumers and that is why he has been banned. This should serve as a warning to others both inside and outside the regulated community.”

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