Release Date: 28th September 2023
To access the original FCA document, click here.
Summary
Mr Andrew John Deeney has been fined £397,400 by the Financial Conduct Authority (FCA) and prohibited from performing any function in relation to any regulated activities. This action results from his dishonest and reckless conduct during his tenure as an adviser and director at Active Wealth (UK) Limited and Fortuna Wealth Management Limited.
Key Reasons for the Fine:
- Unsuitable Pension Advice: While at Active Wealth, Mr Deeney provided unsuitable pension advice to clients, motivated by the desire to receive prohibited commission payments.
- Dishonest Conduct: He dishonestly accepted banned commissions and attempted to disguise these payments through apparently arm’s length companies.
- Reckless Recommendations: Deeney advised clients to invest in high-risk, illiquid investments, disregarding the obvious risks and suitability for his clients.
- Misleading the FCA: At Fortuna, Mr Deeney misled the FCA about high-risk investments advised by his firm and improperly received ongoing service fees and trail commissions from clients without their consent or providing any services.
Key Takeaways for Other Firms:
- Adhere to Regulations: Strictly follow FCA regulations, particularly regarding commission bans and the provision of suitable advice.
- Integrity and Transparency: Maintain high standards of integrity and transparency in all client dealings and regulatory communications.
- Client Interests First: Ensure that client interests are prioritised over personal financial gains to avoid conflicts of interest.
- Effective Oversight: Implement robust oversight and compliance frameworks to monitor and manage the suitability of investments and advice given to clients.
Conclusion:
The FCA’s action against Mr Deeney serves as a stark reminder of the importance of integrity, transparency, and adherence to regulatory standards in the financial services industry. Firms and individuals must ensure their practices are aligned with regulatory requirements to protect clients and maintain trust in the financial system.
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