The FCA has fined five directors over failings in their pension transfer business.
The regulator says three firms acted “without integrity” and mislead the FCA over their conduct.
“They acted recklessly in closing their minds to the obvious risks. They were all approved persons in a controlled function at their firms and so should have known that by using the pension review and advice process, they were acting recklessly.”
All directors were also flagged as having provided false or misleading information to the FCA.
“All five directors should have known the products recommended to their customers were not suitable”.
The Financial Services Compensation Scheme has had to pay out close to £30m to affected customers whose money ended up in high-risk investments.
Notices have been issued to now-liquidated firms Financial Page Ltd and Henderson Carter Associates, and their directors Andrew Page, Thomas Ward and Aiden Henderson.
Cheltenham-based Bank House Investment Management was issued a penalty fine of £311,639 while its directors Robert Ward and Tristan Freer were also banned and issued penalties of £88,100 and £52,725 respectively.
The regulator says the three firms had “little meaningful oversight and involvement” in the advice provided to customers under their names.
The FCA have also disclosed that they outsourced parts of their pension review and advice processes to unauthorised third parties.
A total 2,004 customers invested around £76m in pension assets with the firms.
The FSCS has compensated 1,104 customers a total of £26.8m so far.
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