Release Date: 12th July 2013
To access the original FCA document, click here.
Summary
Jeffrey Simon Bennett was fined £28,000 by the Financial Conduct Authority (FCA) and prohibited from performing any significant influence functions within regulated financial activities. This action followed breaches of regulatory responsibilities as a Director of Burlington Associates Limited, where he failed to exercise due care and diligence.
During his tenure, Bennett failed to oversee or intervene in the promotion and arrangement of investments in three unregulated collective investment schemes (UCIS) to retail customers, despite clear risks and statutory requirements against such practices. These activities, influenced by another director known as Director A, exposed Burlington to the risk of breaching its Appointed Representative (AR) agreement and regulatory obligations. Bennett’s neglect allowed the firm to engage in activities that ultimately put retail consumers at risk of significant financial losses.
Approximately 880 investors were affected, with investments totalling €38 million, potentially now worthless due to the financial instability of the UCIS involved. The FCA’s action underscores the importance of management personnel in financial firms actively ensuring their firm’s operations comply with legal and regulatory standards. The penalties and prohibitions imposed on Bennett serve as a stark reminder to other firms of the consequences of failing to adequately oversee firm activities and compliance with regulatory requirements.
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