Former Integrity Financial Solutions chief executive Iain Stamp has defended the firm’s geared traded endowment policies, saying the FSA caused the firm to go into liquidation due to a “misguided” investigation.
The FSA censured the firm in May for failing in its role as a provider and adviser of geared Teps. Integrity is in voluntary liquidation and the FSA has instructed the liquidator to write to all clients informing them they could be entitled to make a claim.
The FSA waived a £350,000 fine so any money could be used to meet claims.
The FSA found Integrity failed to communicate the suitability of a geared Tep for clients and IFAs were not given balanced information about the risks.
Stamp insists the marketing material was clear and fully explained the risks. He claims the FSA did not understand the nature of what was being offered and refused to meet him. He says: “The firm is of the view the investigation was biased, unnecessarily costly, intimidating and uncooperative, commercially restrictive, misguided and has caused immeasurable reputational damage to the firm, all of which has ultimately caused or very largely contributed to the firm’s demise.”
Stamp is founder and chief executive of innovativeFD, a recently launched firm offering investment services to the institutional and IFA markets.