UK's FCA fines duo £1.3m for pension transfer advice failings

The UK's Financial Conduct Authority (FCA) has banned former directors Toni Fox and David Price, as well as charged them with a collective £1.3m fine for pension transfer advice failings.

The regulator revealed on Friday (1 September) that it has fined Fox £681,536 and Price £632,594.

Between 21 April 2015 and 31 October 2017, CFP Management, where both Fox and Price were former directors, gave advice on 1,470 transfers worth more than £392m.

Fox and Price both had oversight the pension transfer model operation, however the FCA found that over 99% of the advice was to transfer and over 90% did not comply with FCA rules.

The FCA confirmed that of those advised, 33 clients were members of the British Steel Pension Scheme.

The watchdog said the "flawed process" risked people receiving unsuitable advice to transfer out of defined benefit pension schemes.

Fox and Price have referred the decision notices to the Upper Tribunal where they will present their case which will determine what further action the FCA will take.

Joint executive director of enforcement and market oversight Therese Chambers said:  "Fox and Price's misconduct meant that customers did not receive the advice they needed when trying to secure comfort and peace of mind for their retirement.

"Despite having a wealth of experience in the industry, they both oversaw and designed a deeply flawed advice model that was little more than a machine to churn out recommendations to transfer, placing people's hard earned retirement money at risk."