FCA imposes landmark recruitment ban on network - which escapes £12m fine

Laura Miller
clock

The Financial Conduct Authority (FCA) has used its suspension power for the first time to ban two subsidiaries of the Financial Group - network Financial Ltd and separate firm Investments Ltd - from recruiting new appointed representatives (ARs) and individual advisers for a period of four and a half months.

The FCA said the firms failed to ensure their ARs and individual advisers were adequately supervised and controlled to minimise the risk of mis-selling and the provision of unsuitable advice to consumers. Were it not for the firms' financial position, the FCA would have imposed a penalty of £12.5m on network Financial and more than £620k on Investments. The regulator said networks play an important role in financial services and it is critical that they have access to quality management information and risk-focussed systems and controls so that they can effectively discharge their res...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Ex-Janus Henderson analyst jailed for insider dealing and money laundering

Ex-Janus Henderson analyst jailed for insider dealing and money laundering

Former analyst's sister also sentenced

Linus Uhlig
clock 07 July 2025 • 2 min read
Advertising watchdog upholds complaint against car rental 'investment' firm

Advertising watchdog upholds complaint against car rental 'investment' firm

Second complaint to be upheld against the business in just over a month

Jen Frost
clock 07 May 2025 • 4 min read
FCA seeks feedback on cryptoasset trading regulation

FCA seeks feedback on cryptoasset trading regulation

Aims to build confidence in the sector

Patrick Brusnahan
clock 02 May 2025 • 1 min read