Charles Palmer, now chairman of IFA Compliance, has challenged the decision and taken the case to the Upper Tribunal.
He said: “I am pleased the FCA has finally published its findings. Its investigation went back more than five years, and has taken more than three years to complete.
“After all the time and money spent on this FCA investigation of Financial Ltd there was just one single allegation of substance against me.
“I maintain my defence and the final say will be now with the tribunal next year.”
As well as fining Mr Palmer nearly £87,000 the FCA has also fined Paivi Grigg, the group’s former risk management director, £14,807 for failing to ensure the network’s risk management framework was adequate.
According to a final notice issued by the FCA on Friday, Mr Palmer’s failings relate to the period between 24 February 2010 and 20 December 2012.
It said: “The business model that Mr Palmer developed and maintained focused on serving ARs and RIs and allowed ARs and RIs to be afforded a high level of flexibility and freedom as to how they could operate within the adviser network.
“This business model thereby increased the risk to underlying customers inherent in an adviser network, and gave rise to material risks to underlying customers, including the increased risk that the Firms would be unaware of, or unable to prevent, ARs and RIs giving unsuitable advice or selling unsuitable investments.”
The FCA said it considers Mr Palmer’s failing to be particularly serious for a number of reasons, including the fact that it has taken enforcement action against him in the past for breaching his responsibilites as a director.
In February Tavistock Investments shareholders voted unanimously in favour of its acquisition of Standard Financial Group.
Tavistock Investments closed Financial Ltd and Investments Ltd, the two trading subsidiaries it bought during the deal for Standard Financial Group, in October.