The FSA has for the first time made public its damning indictments of an IFA and an insurance broker who it banned for acting without integrity before a final decision has been made on the cases.
The FSA has published the decision notices for Stuart Unwin and Derek Wright ahead of a tribunal on their cases, under a power given to the regulator by Parliament in 2010.
An upper tribunal will determine the appropriate action for the FSA to take. It may uphold, vary or cancel the FSA's decision.
In a decision notice dated 2 March 2011, the FSA set out its decision to ban Unwin from holding a significant influence function (SIF) on the basis he is neither competent nor capable to do so.
In the FSA's opinion, Unwin failed to put in place adequate systems and controls to ensure occupational pension transfer advice given by his firm was suitable and signed off by a pension transfer specialist, despite warnings from the FSA.
Elsewhere the FSA said Unwin also delegated compliance responsibilities to an inexperienced person and failed to check the standard of their work.
In the Wright's case, in a decision notice dated 23 February 2011, the FSA set out its decision to ban the insurance broker from all regulated activity, on honesty, integrity and competence grounds.
The FSA believes Wright was unwilling to comply with the FSA approved person regime and provided misleading information to the FSA.
In the FSA's opinion Mr Wright arranged for his wife, Mary Wright, to take on the FSA approved roles while he actually ran the firm, Moorgate Insurance Agencies, a small insurance broker.
Wright had previously been disciplined by Lloyds of London in 2001 and the FSA believes this would have been a highly relevant factor in its assessment of his fitness if he applied for approved person status.
The FSA also believes Wright failed to be open with the FSA about his true role in running the business and although he effectively acted as a director of the firm, he produced poor quality regulatory returns and failed to ensure the firm had adequate resources.
The Tribunal's decision will be made public on its website. The date for the hearings will be set in due course, the FSA said.
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