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IFA director banned for poor practice

Published on 6 Apr 2010 under category: legal

A director of an independent financial advice (IFA) firm has been banned from holding similar positions in the future, after he failed to take action on previous warnings from the industry watchdog.

The Financial Services Authority (FSA) had previously told director Martyn Powsney to take action on unsuitable advice given to customers.

However, Powsney did not ensure that checks were in place and has now been banned after being "found to not be fit and proper to run an authorised firm".

Tom Spender, the head of department, enforcement and financial crime at the body, said: "It is vital that those running firms have the necessary competence and capability to put systems and controls in place to ensure that suitable advice is given and customers are treated fairly.

"Individuals who do not have these qualities are a risk to consumers and face being banned."

The FSA is to complete its three year assessment programme for small firms this year, under which it aims to assess around 3,500 small firms across all regions of the UK.

It has taken an increased interventionist stance by monitoring the companies which are found to fail assessments for high customer care standards.

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