‘Reckless’ pensions advice: Watchdog slaps ex-Quilter rep with huge fine
The City watchdog has banned a former Quilter adviser from working in finance, accusing him of “recklessly betraying his responsibilities” by offering pensions advice he wasn’t qualified to give.
The Financial Conduct Authority (FCA) has given Daniel Thomas – whose DPT Financial Solutions was an approved representative of FTSE 250 wealth manager Quilter – a lifetime ban from working in the financial industry and fined him £742,700 for giving clients counsel on their defined benefit pensions.
Over five years, Thomas misled more than 50 clients, the financial regulator found, recommending they transfer out of so-called DB pensions, where savers get guaranteed income for the rest of their life loosely based on their final salary. By advising customers to switch , Thomas was found to have earned more than £173,000 in fees.
Thomas, whose Bridgend-based financial advice firm was terminated from the Quilter network more than six years ago, gave advice he was neither qualified nor allowed to give, the FCA said on Thursday.
“When you advise someone on their pension, you hold their future in your hands,” Therese Chambers, executive director of enforcement at the FCA, said. “Mr Thomas recklessly betrayed that responsibility.
“We will not stop acting against those ignoring our rules and unfairly putting people and their hard-earned money at risk.”
Thomas ‘repeatedly misled pension providers’
It is rarely in savers’ interest to shift their pension arrangements out of DB pensions. Their successor – defined contribution pensions – generally pay out out less to customers, and their returns are more contingent on the performance of the funds in which their savings are invested.
Thomas has appealed the decision, meaning the FCA’s findings are currently only provisional. But the watchdog found has said the financial adviser “repeatedly misled clients and pension providers” over his qualifications. He also destroyed client records and failed to co-operate with the regulator’s probe.
The watchdog made no findings against Quilter as part of the ruling. The London-listed group has over 1,300 firms in its sprawling network of financial advisers.
Quilter was approached for comment.