In a statement, the FCA said it had stopped short of fining Financial Limited and Investments Limited a total of £13,589,134 and £621,583 respectively, because of the firms’ financial positions.
Both companies were said to have failed to ensure their ARs and individual advisers were adequately supervised and controlled to minimise the risk of mis-selling and the provision of unsuitable advice to consumers.
Its ban, the first the regulator has imposed, will last for four and a half months and is intended to “deter the firms and other similar network firms in the market from committing similar breaches”.
The FCA said it was critical network members had access to quality management information and risk-focused systems and controls.
Between 20 August 2008 and 30 April 2013, the FCA said there were systemic weaknesses in the design and execution of the firms’ systems and controls and risk management framework.
The FCA attributed the failings to the firms’ cultural focus, which viewed the ARs and individual advisers, rather than their customers, as the end consumer.
The FCA said the group now has a new and more experienced board in place which has engaged with the FCA and an external consultant to effect material changes to its systems and controls and risk management framework in line with an agreed remedial action plan.
Financial Group agreed to settle the case at an early stage of the investigation and therefore qualified for a 30 per cent discount.
