Emma RadmoreThe Upper Tribunal has upheld the FCA’s decisions to fine and ban two individuals who had held senior positions in two wealth companies.
Stephen Burdett, said the FCA, caused 232 pension funds worth over £10m to be switched into obviously unsuitable high-risk investment portfolios, which were created and managed by James Goodchild. Mr Burdett allowed the customers of his firm to receive reports saying their money would be in medium- or low-risk portfolios, despite knowing of the high-risk investment, while Mr Goodchild used misleading terms by describing 2 of the 3 high-risk portfolios as “cautious” and “balanced”.
Mr Burdett also acted as a director of his firm despite knowing he was not approved by the FCA to do so.
The FCA intervened in 2016, stopping the pensions business of both relevant firms which subsequently went into liquidation.
Both individuals have been banned from working in regulated financial services and fined £265,000 (Mr Burdett) and £47,000 (Mr Goodchild).