I think it is time the pub licensing authorities take over keeping tabs on financial advisers.
Before you accuse me of having one too many tipples at lunchtime and slate this as a stupid idea, listen to the reason why I think this has potential.
Recently my local pub landlord had a run-in with the law.
After writing 'Death to Allah' on a plane's armrest and handing over an Islamophobic note to two Arabic passengers on a Qatar Airways flight from Doha to London Heathrow, he was sentenced to a community order and ordered to carry out 160 hours of unpaid work, plus pay £3,604 in damages and £300 towards prosecution costs.
He was spared jail and according to his defence lawyer Joseph Breslin, 36, who was returning from honeymoon with his pregnant wife, was "extremely remorseful" and a "pillar of the community".
I am not surprised that he was upset because before the court even made their judgement Mr Breslin, who sobbed in court as character statements written by several people were read, lost his licence to sell alcohol.
The pub licensing authorities don't sit around twiddling their thumbs.
If it is clear you aren’t fit and proper, you are out of that industry quicker than the backlogged courts can take action against you.
Compare that to the actions of the FCA.
This week a minister had to urge the Financial Conduct Authority to take action on phoenixing so it does not undermine trust in the financial services sector.
Robert Jenrick, the Exchequer secretary to HM Treasury, was speaking after a debate in Parliament on 24 April on the regulation of financial advisers.
The debate had been requested by Thirsk & Malton MP Kevin Hollinrake after two of his constituents lost money after being advised by adviser Scott Robinson, who owned and operated a firm called TBO Investments until 2016.
Mr Hollinrake said despite a complaint to the FCA, a successful claim to the Financial Ombudsman Scheme and it being established that Mr Robinson was providing advice without the required professional indemnity insurance, he remained an approved person on the FCA Register and had closed his previous firm to open a new one, called Mount Sterling Wealth, taking his clients with him.
Mr Jenrick said: "We will work with the FCA to ensure appropriate rules are put in place. I intend to ensure action is taken in this area.
"Phoenixing in these circumstances is wrong. It leaves consumers and taxpayers out of pocket and the reputation of the industry tarnished."
Mr Jenrick – the FCA already has the power to strike individuals off the register if they are considered not to be fit and proper to work in this industry.
The FCA doesn't need more rules or powers – it just needs to learn a thing or two from the pub licensing industry and act more swiftly.
emma.hughes@ft.com
