Release Date: 26th June 2023
To access the original FCA document, click here.
Summary
Mark Antony Abley has been fined £106,100 by the Financial Conduct Authority (FCA) and prohibited from performing any function related to advising on Pension Transfers and Pension Opt-Outs. The penalty is a result of his failure to provide suitable Pension Transfer advice while at County Capital Wealth Management Limited (CCWM).
Reasons for the Fine:
- Unsuitable Pension Transfer Advice: Between 18 April 2015 and 6 February 2018, Mr Abley gave inappropriate advice to customers to transfer out of Defined Benefit Pension Schemes (DBPS), often disregarding the importance of the guaranteed benefits these schemes offered.
- Failure to Obtain Necessary Information: Mr Abley did not gather sufficient financial information from clients, which is essential for assessing the suitability of transferring out of DBPS.
- Inadequate Justifications: He failed to provide sufficient justification for recommending that clients give up their guaranteed benefits.
- Lack of Proper Risk Assessment: He did not adequately consider clients’ attitudes to risk or their understanding of the risks involved in transferring their pensions.
- Errors in Transfer Value Analysis: Mr Abley made significant errors in his transfer value analyses, leading to misleading comparisons for clients.
Key Takeaways for Other Firms:
- Ensure Comprehensive Client Information: Always obtain all necessary financial information from clients to assess the suitability of pension transfers.
- Provide Clear Justifications: Ensure that the advice to transfer out of a DBPS is clearly justified and in the best interest of the client.
- Assess Client Risk Tolerance: Properly evaluate and document the client’s risk tolerance and understanding of the risks involved in pension transfers.
- Accurate Transfer Value Analysis: Conduct accurate and thorough transfer value analyses to provide clients with reliable comparisons.
- Avoid Misleading Practices: Maintain transparency and avoid any practices that could mislead clients or the regulatory authorities.
Conclusion:
The FCA’s action against Mark Antony Abley underscores the critical importance of providing suitable and well-justified advice on Pension Transfers. Financial advisers must gather comprehensive client information, conduct accurate analyses, and ensure transparency to protect clients’ interests and comply with regulatory standards.
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