Ten mistakes that led to Financial's landmark FCA recruitment ban

Ten mistakes that led to Financial's landmark FCA recruitment ban

Laura Miller
clock

Network Financial has been banned from recruiting any new advisers for four months - the first time the regulator has used this power - as punishment for "serious" failings in the running of the business. So what went wrong?

Financial is an adviser network based in Cheltenham, Gloucestershire, responsible for 299 appointed representatives (ARs) and 342 registered individuals (RIs) advising customers on pensions, investments including unregulated collective investment schemes, mortgages and general insurance and protection products. As a result of Financial's failures between August 2008 and April 2013, more than 60,000 customers were exposed to the real risk that its ARs and RIs would make recommendations, including in relation to high risk products, which were unsuitable and would result in loss. Ongoing...

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

FCA urged to add ethical funds SDR label

FCA urged to add ethical funds SDR label

'We will carry on lobbying to try and change the rules'

Cristian Angeloni
clock 07 October 2024 • 1 min read
FCA's SDR regulation will 'make advisers sit up and listen'

FCA's SDR regulation will 'make advisers sit up and listen'

‘There has to be a fundamental re-educating of the adviser community’

Isabel Baxter
clock 30 November 2023 • 4 min read
Advice/guidance boundary review will help 'bridge advice gap'

Advice/guidance boundary review will help 'bridge advice gap'

The FCA’s latest update leads to mixed reactions from the industry

Sahar Nazir
clock 04 August 2023 • 4 min read