View more on these topics

FSA bans IFA from senior management position

The FSA has banned sole trader Darrell Mark Eaden from being a senior manager for failing to effectively monitor his pension transfer specialist, exposing customers to the risk of receiving unsuitable advice.

Eaden, who used to trade as Liberty Financial Consultants, specialised in mortgages and investments.

The FSA says between May 2004 and March 2005 Eaden did not exercise due skill, care and diligence in managing the business of Liberty.

Eaden failed to maintain an appropriate level of understanding of pension transfers and to adequately supervise and monitor the firm’s pension transfer specialist.

He did not take reasonable steps to ensure that Liberty’s pension transfer business was organised so that it could be controlled effectively. He also failed to take reasonable steps to ensure that Liberty’s pension transfer business complied with the relevant requirements and standards of the regulatory system.

FSA head of retail enforcement Jonathan Phelan says: “Firms must have in place and operate effective systems to ensure suitable advice is given to customers – this is a key part of treating customers fairly. Mr Eaden was responsible for ensuring that Liberty’s pension transfer specialist was effectively monitored, but he fell a long way short of achieving this. As a consequence he has been banned from being a senior manager.

“Our action should leave firms in no doubt that the FSA places great emphasis on the importance of adequate systems and controls, and individuals responsible for those systems and controls will be held accountable if they are not adequate.”

Recommended

Back to basics

I have recently come into a sum of money and need some advice but I am slightly nervous of approaching a financial adviser as I do not know very much about finance. Will an independent financial adviser be able to help me understand general financial principles, as well as my own situation?

The changing world of professional connections

The Legal Services Act of 2007, which opened up the legal market to competition, has put the cat among the professional pigeons. In the words of a 2015 Law Society report on what the legal profession is likely to look like in five years’ time: “Business as usual is not an option for many, if […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment