Any IFA firm that is still trading as a sole trader or partnership should read Loretta Minghella’s letter several times.
Her letter makes chilling reading and a quiet retirement for these unfortunates is a fantasy.
The liability for their actions will hound them and their partners to the grave and even beyond, as some executors have discovered.
As Minghella coolly relates, the Financial Services Compensation Service can apply to the High Court under section 221 of the FSMA to enforce compliance with their requests.
Failure to comply with the subsequent High Court decision may result in imprisonment.
It is of some relief to us that these Government powers of imprisonment do not extend to directors and shareholders of limited liability companies but are restricted to those looking forward to care in the community after retiring as IFAs.