Release Date: 23rd August 2013
To access the original FCA document, click here.
Summary
In August 2013, the Financial Conduct Authority (FCA) issued a Final Notice to Mr Andrew Jeffery, a sole director and the only approved person at Jeffery Flanders (Consulting) Limited, an insurance intermediary. The FCA imposed a financial penalty of £150,000 and issued a prohibition order preventing Mr Jeffery from performing any function in relation to regulated activities. This decision was supported by the Upper Tribunal (Tax and Chancery Chamber), affirming Mr Jeffery’s breaches of Statements of Principle 1 and 4, which highlight the need for acting with integrity and openness in dealings with the Authority.
Mr Jeffery’s violations, as detailed in the Tribunal’s findings, included creating and sending deceptive letters to insurers under clients’ names, forging client signatures, failing to secure insurance for clients while misleading them about their coverage, and making false statements to the FCA. These actions not only breached regulatory standards but also posed a severe risk to clients and undermined confidence in the financial system.
The Tribunal concluded that Mr Jeffery exhibited “a wholly unacceptable lack of integrity, prioritising personal interests over client welfare and displaying reckless disregard for client interests. His actions were deemed of the “basest standard,” far from the high conduct expected in the financial services industry.
This case serves as a stark reminder to other firms and regulated individuals about the critical importance of integrity, transparency, and client-first conduct in the financial services industry. Firms must ensure robust compliance systems and training are in place to prevent such breaches and protect the interests of clients and the integrity of the financial system. The FCA’s decision to impose a significant fine and a career-limiting prohibition highlights the severe consequences of failing to adhere to regulatory expectations and ethical standards.
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