FSA has banned an adviser and sole director of a firm which specialised in investment bonds, and also banned the firm. It found Norman McCance of Penn Financial Services Unlimited failed as adviser and director. As adviser, he:
- acted recklessly when he arranged transactions he could not justify in terms of suitability and when he gave written loss guarantees to individuals who complained about the performance of their bonds (which stopped them complaining further);
- failed to record enough information to check recommendations were suitable for customers;
- completed mortgage applications with inaccurate information; and
- conducted pension transfers outside the scope of the firm’s permission.
As director, he did not:
- put in place adequate and effective compliance arrangements over the firm’s business;
- do compliance checks to monitor or review the firm’s business; or
- improve the firm’s compliance resources even though he knew they were inadequate.