Updated: Adviser denied FCA re-authorisation has £3m in FSCS claims

Walker was the sole shareholder, director and adviser at Belfast-based C3 Financial Services when she gave advice to customers to switch their personal pensions into self-invested personal pensions (SIPPs) where the underlying investments were held in risky unregulated bonds.

The bonds were all structured and distributed by the same entity - referred to as ‘Provider C' by the FCA - for the purpose of attracting funds for businesses to raise capital, often start-up companies, a large number of which related to green energy projects or overseas property developments.

The majority of C3's investment business came from customers who were introduced as a result of an agreement with an introducer firm, the FCA said. C3 would pay the introducer half of all the income generated and half of all trail commission for all introduced business.

The FCA's supervisory team said it identified "serious concerns" with the sales and advice processes at C3 and, in July 2017, the adviser firm voluntarily accepted regulatory requirements that dictated it must immediately cease all regulated activities relating to pensions and investment business until various remedial steps were implemented.  

Walker then decided to close C3. Its regulatory authorisation was cancelled in September 2017 and it was dissolved in February 2018.

C3 had been the subject of claims relating to the investment and pensions advice given by Walker. The FSCS told PA the lifeboat fund had so far paid out £3.1m in compensation to 153 customers of a total 192 claimants. 

Wesleyan's role

On 16 August 2018 Wesleyan Financial Services applied for regulatory approval for Walker to perform the CF30 function at the firm.

Birmingham-based Wesleyan specialises in providing financial advice and products to selected professional groups, notably GPs and hospital doctors.

The FCA decided to refuse Wesleyan's application. The financial watchdog said while Walker had acknowledged her lack of competence and capability at C3, including the serious consequences arising from it, and was prepared to undertake further training, the FCA was not satisfied she had achieved a sufficient standard of competence and capability to carry out the CF30 role at Wesleyan.   

Walker first began working at Wesleyan on 14 May 2018 where she completed its in-house training programme for new advisers.

In light of her history at C3, Wesleyan agreed with Walker she would undertake an extended period of supervised work once she had taken up the CF30 role.

In December 2018 Wesleyan terminated Walker's employment and withdrew its support for her regulatory application. It told the FCA this decision was taken "based on the volume on complaints registered with the FSCS and the previous [FCA] investigation which identified significant advice-related issues".

Since the closure of C3, Walker has undertaken independent professional development, according to the FCA, including passing examinations with the aim of obtaining Chartered status with the Chartered Insurance Institute.

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