FCA's Megan Butler gives punchy warning on phoenixing and 'lifeboating'

Speaking at the Personal Investment Management and Financial Advice's (PIMFA) inaugural Virtual Fest on Thursday (4 June), the Financial Conduct Authority (FCA) executive director gave firms a punchy warning the regulator was keeping a close eye on market behaviour. She noted ‘phoenixing' - where a firm folds and reincarnates as a different entity to avoid outstanding liabilities - and ‘lifeboating' - where an existing firm is acquired pre-emptively before a firm folds - was "unacceptable". She also said the FCA had seen examples of advisers leaving advice firms, typically after givin...