FCA bans pair for “lack of integrity”

Published on

The Financial Conduct Authority (FCA) has banned Mark Kelly and Patrick Gray from working in financial services on the basis that they lack integrity.

Kelly provided financial services to UK customers under the name PCD Wealth and Pensions Management (PCD) and Gray was one of his advisers. Between 2008 and 2010 PCD arranged for over 350 customers to be advised and invested nearly £24 million of customers’ funds in potentially unsuitable investments. PCD also failed to declare to customers the fees it was receiving from a number of these investments.

Mark Steward, director of enforcement and market oversight at the FCA, said: “These two individuals misused pension funds, endangering the retirement incomes of hundreds of people. While further investigations continue, the FCA considers it necessary to prohibit them to help protect consumers.”

Between August 2008 and July 2010 Kelly invested customers’ pension funds in risky investments without customers’ knowledge or consent. The process was designed to prevent customers from discovering where their funds had been invested and without any regard to the suitability of the investments for the customers.

Kelly also received some money from product providers taken directly out of customers’ investments, without their knowledge. He arranged for this to be paid directly into a bank account in his name.

Gray provided investment advice to at least five customers in the knowledge that he had no qualifications or training to do so. In one case he gave unsuitable advice to a customer to invest in an unregulated collective investment scheme (UCIS).

Gray also recklessly provided customers with misleading information in relation to costs and charges and arranged for customers to sign incomplete investment forms despite being aware of the risk that fees could later be added to the forms (and taken from customers’ funds) without their knowledge.

In addition Gray gave customers pension reports containing false and misleading assurances that they would receive advice on their investments even though, from October 2009, Gray knew that funds were being invested without their consent or knowledge. He also misled the FCA in a compelled interview.

The FCA said it cannot fine either individual because they were not approved persons at the time of the misconduct.

Latest POLL

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...

Atom bank breaks Near Prime record

Atom bank has reported another record-breaking month for Near Prime activity. Over the course of...

Berkeley Alexander appoints new BDM

General insurance provider Berkeley Alexander has announced the appointment of Grant Robinson as a...

Other news

Lenders must step up on high LTV products

Things are on the up for borrowers with a smaller deposit. The financial information...

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...