The Financial Services Authority (FSA) has barred Cornelius McGee from carrying out regulated activities after he failed to maintain professional indemnity insurance (PII).
McGee, who operates a sole trader practice called McGee Lindsay and Company, has had no PII since 10 March 2004.
Since that date and despite repeated requests and warnings from the regulator, he has failed to comply with FSA Rule 13.1.4(1), which requires a firm must take out and maintain at all times PII.
The FSA says McGee has therefore failed to make adequate provision in respect of his liabilities, which creates a risk of loss or other adverse effect on consumers.
It adds: “You are failing to satisfy the threshold conditions set out in schedule 6 of the Act in that, in the opinion of the FSA, you have failed to satisfy the FSA that you are conducting your business soundly and prudently and in compliance with proper standards.”
McGee failed to comply with Principle 6 (Customers’ interests) of the Principles for Businesses, and Threshold Condition 5 (Suitability).
Further, the regulator says he failed to comply with an Award made by the Personal Investment Authority Ombudsman and two Awards made by the Financial Ombudsman Service (Fos).
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7968 4554 or email [email protected].IFAonline
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