Mortgage News
FCA warns adviser over ‘reckless’ UCIS sales
The Financial Conduct Authority (FCA) has issued a warning notice to a director of an appointed representative (AR) firm for promoting and arranging unregulated collective investment schemes (UCIS) despite its network not allowing UCIS business.
The regulator called the director’s behaviour “reckless”, saying it was likely customers were misled into thinking the AR’s involvement in the arrangements was authorised.
“The FCA considers that the individual’s conduct demonstrates a lack of integrity”, it concluded.
This was the tenth warning notice published by the regulator since it decided to name firms – and in some circumstances individuals – in public notices last October.
It is the first concerning an adviser, following a string of banker warnings.
A warning notice is a preliminary action taken by the FCA, following which individuals can make representations to the Regulatory Decisions Committee (RDC), which then decides what action to take and whether to issue a decision notice.
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UCIS sales were restricted to the most experienced, or ‘sophisticated investors’ by the regulator in June last year in order to protect ordinary retail investors from the high risks and complexities associated with the products.