"Former Directors Fined Over Flawed Pension Advice Process"

The Financial Conduct Authority (FCA) has issued decision notices against two former directors of CFP Management Ltd, Toni Fox and David Price, in connection to a flawed process that may have led to unsuitable advice being given to pension holders. As part of the sanctions proposed in the decision notices, it is proposed that both individuals are fined a total of £681,536 and £632,594 respectively and banned from carrying out any regulated activity. The matter has been referred to the Upper Tribunal who will determine whether these measures are appropriate. Between 2015 and 2017, CFP advised on 1,470 transfers valued at over £392 million with approximately 90% failing to comply with FCA rules. 33 of those advised were members of the British Steel Pension Scheme. Both individuals had 30 years’ experience in the pensions industry, however were found to have provided advice without appropriate consideration to clients' financial circumstances, attitudes to risk and capacity for loss. It was also revealed that the advice given was likely driven by high transfer fees and substantial gains made by each of the directors. The FCA also released a statement alongside the decision notice, in which Therese Chambers, joint executive director of enforcement and market oversight stated: “ Ms Fox and Mr Price’s misconduct meant that customers did not receive the advice they needed when trying to secure comfort and peace of mind for their retirement. Despite having a wealth of experience in the industry, they both oversaw and designed a deeply flawed advice model that was little more than a machine to churn out recommendations to transfer, placing people’s hard earned retirement money at risk.”