Blog written by Angharad Phillips | Trainee Solicitor, Financial Mis-selling
The Financial Conduct Authority (FCA) is investigating two Independent Financial Advisers (IFAs) in relation to a pension scam that is report to have generated £5.9m in payments for those involved.
On 30 September 2021, the FCA published a warning notice stating that the advisers face regulatory action, including a fine, if their role in the pension scam is not successfully challenged.
The FCA suspects the two advisers of colluding with a stockbroker to make sure that customers switched or transferred their existing pension funds into a self-invested personal pension (SIPP) which would in turn be invested in high-risk investments in investment companies seeking to raise funds. In return, the investment companies were requested to make ‘substantial marketing and other payments’ to the advisers and the stockbroker, totalling £5.9m.
As this formed the first stage of the FCA’s enforcement proceedings, none of the people involved have been named.
The advisers and stockbroker will now be able to make representations to the FCA’s Regulatory Decision Committee before it decides on appropriate further action and whether to issue a decision notice.
If the FCA issues a decision notice, the advisers and stockbroker will be named and they will then be able to take the case to the Upper Tribunal which would reach an independent decision on the appropriate action for the FCA to take.
