The FSA is cracking down on banned advisers believed to be continuing to give advice.
The regulator has announced details of two separate investigations into unauthorised business carried out by banned individuals.
The first investigation relates to Gary Hexley and John Cooper, Hexley’s business partner. The FSA has charged Hexley with six offences relating to investment advice given whilst unauthorised. Hexley is banned from performing any function in relation to any regulated activity in the financial services industry.
He has been charged with carrying on a regulated activity without being an authorised or exempt person, and five counts of dishonestly concealing a material fact.
Cooper has been charged with three counts of dishonestly concealing a material fact. Hexley and Cooper have been bailed to attend Birmingham Magistrates’ Court on 26 October.
In a separate second investigation, the FSA today executed a search warrant with the help of Kent Police at an address in Kent in connection with an investigation into mortgage advice given by a banned individual.
A 64 year old man was arrested on suspicion of committing offences under the Financial Services and Markets Act. No-one has been charged at this stage, and the FSA’s investigation is ongoing.
Yellowtail Financial Planning managing director Dennis Hall says: “I do not think the FSA really has its finger on the pulse when it comes to people purporting to be advisers when they are not. And if providers do not have a record of bans or do proper checks, this is when unauthorised business slips through.”