Regulation  

FSA takes action against veteran adviser

Mr Jackson, chief executive of Ilford-based Baronworth Investment Services, has also been given a partial prohibition from performing any significant influence function.

In a statement from the FSA, Bill Sillett, head of retail enforcement, said the regulator had sought to impose a financial penalty of £50,000 on the firm, but as Baronworth entered into liquidation on 17 July 2012 this was reduced to nil so that any funds could be returned to creditors.

It said that Baronworth’s financial promotions lacked balance by emphasising the benefits of a proposed investment without giving equal prominence to the risks.

Article continues after advert

In its decision notice, the FSA said: “Baronworth also received complaints from customers arising from its financial promotions issued during the relevant period and particularly in relation to the Eurolife Secured Bond Isa, a financial promotion issued to its customers in 1999.

“In this regard, the FSA has further found Baronworth failed to handle a significant proportion of these complaints appropriately and in compliance with the applicable regulatory standards.”

The statement added: “Mr Jackson was directly responsible for these failures as he was solely responsible for drafting and approving direct offer financial promotions and handling of complaints within Baronworth.

“Mr Jackson has received a partial prohibition preventing him from performing any significant influence function other than as or through an appointed representative.”

Mr Sillett added: “This particular case emphasises the need for authorised firms and approved persons to ensure their financial promotions are clear, fair and not misleading, especially when they are carried out on a direct offer or non-advised basis.”

Background

The firm was set up in 1985. According to Companies House, the latest annual accounts submitted for the year up to 30/09/2011 reported cash at bank of £10,002, liabilities worth £69,032, net worth of £-26,969 and assets worth £41,923.