FCA stops adviser trading for withholding Fos redress
- Posted by: cnathwani
- Category: Press Releases
The Financial Conduct Authority has cancelled the permissions of a Kent-based financial advice firm after it refused to pay compensation it owed one of its clients.
Foreman Financial Services, which trades as Grainger Co Financial Services, refused to pay an award made against it by the Financial Ombudsman Service.
The complaint was made after the firm recommended a self invested personal pension for one of its clients to use to buy a Harlequin property but the client said Foreman did not assess whether the investment was suitable.
An ombudsman agreed the advice had not been suitable and recommended that Foreman should pay enough money into the Sipp to put the client into the position they would be in, had they not transferred.
But despite repeated requests by the FCA and the Fos, Foreman has not paid the money so the regulator has cancelled the firm’s permissions.
In a statement on its website, Foreman said: “It is with great sadness that we would like to inform our past and present clients that Foreman Financial Services Ltd (trading as Grainger Co Financial Services) has permanently ceased trading.
“We would like to thank you for your business and wish you every success in the future.”
The client had been introduced to Harlequin by another advice firm which was not authorised to advise on pensions and which referred the business to Foreman.
At the time of the Fos decision, the Tunbridge Wells-based firm said other parties had some liability for its client’s loss.
But ombudsman Roy Milne said: “. I think that Foreman should compensate [the client] in full.
“But, [the client] should agree to provide Foreman with an assignment of any rights of action that he may have against any third parties. Foreman can then decide whether it wishes to recover some of the payment it makes from those third parties.”