The FSA has banned Liverpool IFA Michael Sheron from carrying out any regulated activities after finding him not fit and proper to oversee or manage a business.
Sheron was a partner at Liverpool-based Sheron & Company Financial Advisers and was solely responsible for its day-to-day business.
The FSA found Sheron lacked competence and capability. He failed to demonstrate he was ready, willing and organised to comply with regulatory requirements and standards or with his professional obligations and ethical standards.
It says Sheron failed to adequately supervise an adviser whose activities placed the partnership’s financial position at risk. He did not address the problem even after the activities of the adviser had been brought to his attention.
Of the many other issues identified by the FSA, Sheron was responsible for the partnership’s failure to treat its customers fairly by not completing its pension review and not complying with awards made by the Financial Ombudsman Service.
FSA head of retail enforcement Jonathan Phelan says: “Sheron’s lack of competence and capability led to detriment both for customers and product providers. Sheron poses a serious risk to consumers and the industry in the regulated financial services sector and we have banned him from performing any management functions in relation to any regulated business as a result.
“The management of a firm is responsible for ensuring systems are implemented and maintained and staff are adequately supervised in order to fulfil their regulatory obligations. This is a particularly serious case because Sheron’s poor management has led to significant consumer detriment.”
As a result of Sheron’s prohibition, the partnership had no effective management of its regulated activities and ceased trading on August 24. The firm was a small IFA which conducted investment and insurance business.
Sheron decided not to challenge the FSA’s findings.