The UK Financial Conduct Authority (FCA) announced that it has banned a retail investment advisor after it was discovered that he had fabricated documents to show that he met the new minimum standards imposed by the reforms known as the Retail Distribution Review (RDR).
The FCA says that it banned former advisor, Ewan King, and fined him £19,900, after finding that he led his firm to believe that he had qualifications issued by the Chartered Insurance Institute (CII), which is one of the bodies accredited by the FCA to verify that advisors are properly qualified. When challenged to produce proof, it says that he sent two fabricated documents.
The regulator says that it was told by the CII that King had not applied for, or been issued, the qualifications. And, it says that he later admitted to his firm that he had failed the relevant exams, and his contract was subsequently terminated.
As a result, the FCA has found that King lacks honesty and integrity, and poses a risk to consumers and to confidence in the financial system. He is the first advisor to be banned by the FCA for fabricating these qualifications.
“Pushing up professional standards was a key objective of the RDR. Thousands of advisors have met those standards. Mr. King failed not only to achieve the qualifications required by RDR but then acted dishonestly and continued advising customers. His conduct fell woefully short of the standard that we, and consumers, demand of those who work in the financial services industry,” said Tracey McDermott, director of enforcement and financial crime at the FCA.
The FCA says that King agreed to settle at an early stage and qualified for a 30% discount on the fine. The firm was not sanctioned.