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LFC advisers moved to new firm

The wife of banned Liberty Financial Consultants director Darrell Eaden set up a new firm which took on the majority of LFC’s advisers months before LFC went into liquidation.

Last month, the FSA banned Eaden from being a senior manager for failing to monitor effectively his pension transfer specialist, which exposed customers to the risk of receiving unsuitable advice.

The FSA says between May 2004 and March 2005, when Eaden was a sole trader operating as LFC, he did not exercise due skill, care and diligence in managing the business.

Eaden applied for a change of legal entity to set up Liberty Financial Consultants Limited and in March 2006 adv- isers and liabilities were moved to the new firm and the old firm ceased trading.

Eden Personal Financial Planning Limited was authorised in April 2007 and Caroline Eaden is listed as the firm’s sole director. According to the FSA register, she has not held any previous FSA-authorised positions. Fifty-eight of Eden PFP’s 70 advisers were previously employed by LFC Limited and moved to the new venture between June 22 and July 24, 2007. On February 10, 2008, Liberty Financial Consultants Limited went into liquidation. The FSA has written to LFC customers who may have been affected by unsuitable advice. LFC Limited has yet to be declared in default by the Financial Services Compensation Scheme.

SP Legal solicitor Gareth Fatchett, representing Caroline Eaden, says: “The appointment of Caroline Eaden was approved by the FSA. This move meant the clients continued to be served and did not suffer any detriment.”

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