What are you looking for?

22 November 2021 | Comment | Article by Neil Stockdale

FCA prohibits and fines former director of Consumer Wealth Ltd for providing ‘reckless and unsuitable’ advice

Blog written by Angharad Phillips | Trainee Solicitor, Financial Mis-Selling

The Financial Conduct Authority (FCA) has prohibited Omar Hussein, former director and senior financial adviser at Consumer Wealth Ltd (CWL), from working in financial services. Mr Hussein has also been fined £116,000 for providing ‘reckless and unsuitable’ pension switching advice.

According to the FCA website, Mr Hussein advised customers to switch their existing pensions where it was often unnecessary and not in their best interest.

Between 2015 and 2017, Mr Hussein and Consumer Wealth Ltd advised 620 customers to switch their pensions into a self-invested personal pension (SIPP) containing significant investments in Portfolio 6 (P6), a high-risk investment offered by the Discretionary Fund Management firm, which has since gone into administration, Greyfriars Asset Management LLP (Greyfriars). This advice put an estimated £13.5m of customers’ retirement savings at risk.

The FCA say Mr Hussein disregarded clear statements and risk warnings about P6 contained in Greyfriars promotional material and claimed that customers investing in P6 were ‘experienced investors’ when there was no reasonable basis for doing so. It also alleges that his firm charged customers for an on-going advice service which it did not actually provide.

The FCA’s findings that Mr Hussein acted recklessly and abused a position of trust when advising clients who were often financially inexperienced, vulnerable and had no or limited capacity for loss are particularly concerning.

By his own admission, Mr Hussein was aware of the FCA’s pension alerts which reminded advisers that when advising customers to switch to a SIPP, they must assess the suitability of the underlying investments to be held in the SIPP and also warned that non-mainstream investments were unlikely to be suitable options for the majority of retail customers.

CWL has ceased trading and is now in liquidation. The Financial Services Compensation Scheme (FSCS) is investigating claims made by CWL’s customers and has paid compensation to 437 of CWL’s customers so far. Customers that are concerned that they may be affected should contact the FSCS.

If you were a customer of Consumer Wealth Ltd and are concerned about advice you received from the firm, then please contact us for a free initial consultation.

Speak to our specialist Financial Mis-Selling Team today to find out how we can help. We offer ‘no win, no fee’ funding on approved cases.

Author bio

Neil Stockdale


Neil is head of the firm’s group actions and financial mis-selling teams, specialising in handling claims for financial mis-selling relating to energy contracts, pensions, investments and timeshares.

Disclaimer: The information on the Hugh James website is for general information only and reflects the position at the date of publication. It does not constitute legal advice and should not be treated as such. If you would like to ensure the commentary reflects current legislation, case law or best practice, please contact the blog author.


Next steps

We’re here to get things moving. Drop a message to one of our experts and we’ll get straight back to you.

Call us: 033 3016 2222

Message us