How many more bad apples are in the adviser barrel?

We were all stunned to learn the Financial Conduct Authority is investigating Nexus Independent Financial Advisers and Nexus Investment Managers.

It wants to know how nearly £2mn was transferred out of just five clients' accounts over 14 months. According to the FCA, £1.4mn of this was paid into principal Kerry Nelson's personal bank account.

Those facts alone are shocking. 

And it does not take too much Twitter stalking to see how many financial planners and advisers have praised Nelson in the recent past and now feel completely bewildered.

There are photos of her together with well-known industry names. There are respected providers and advisers tweeting admiration for her awards in recent years.

Some have even retweeted comments she made in a rival title's article, in which she said: "More needs to be done to stop scammers and fraudsters".

Big-ticket news stories like this do nothing to help the reputation of the profession

The feeling of shock and surprise when one learns the FCA is investigating her company is real. I feel it, too.

As reported by FTAdviser, the administrators said their appointment was "deemed necessary" because of the sole director’s absence from the business and "due to concerns relating to the director’s conduct".

The rest of the management team is still in place and the business has been marketed for sale. FTAdviser has not been able to contact her. 

And while we are wondering if she is okay, and where she is, and what could possibly have happened in the space of a year that saw Nexus go from winning significant accolades to the company allegedly siphoning off nearly £2mn smackers in 'advice charges', along comes Campbell & Associates. 

We have learned the FCA has placed restrictions on the Romsey-based company over concerns its sole director may have misappropriated £1.5mn of a client’s funds.

Like Nexus, Campbell & Associates is now prevented from carrying out any regulated activity.

Disappointingly enough in a profession that does not have enough senior female representation, the sole director is, once again, a woman.

Lisa Maureen Campbell is listed as the sole active director of the firm and is holder of senior management functions.

Again, it's absolutely shocking.

Big-ticket news stories like this do nothing to help the reputation of the profession, let alone restore the lost trust of those clients who appear to have been treated as cash cows by the people they paid to manage their money for them.

Charm is deceitful

And while it is easy to dismiss this as being just a few bad apples in the barrel, the fact is, nobody sees this sort of thing coming. How many more rotten apples are lurking around? What have we overlooked? Who have we overlooked?

Charismatic and outspoken advisers have often been courted and feted as shining examples of how to do it right: how to help clients achieve their goals and protect their wealth.

But as we have been reminded: you can't always see it coming.

Remember the David Aaron Partnership? At the nadir of its downfall in 2004, there were more than 1,000 complaints as it went into administration. Putting my hands up on behalf of the old Financial Adviser paper, we often used to quote them back in the day.

None of us expected to see it go under. 

How can we work together, you and FTAdviser, to help restore faith in our profession? 

Or what about Alok Dhanda, another media darling, who was jailed over a £2.6mn scam in 2018? As FTAdviser reported at the time, the police found a stash of money and a briefcase of condoms while searching his office and home back in 2015.  

One senior personality from the advisory profession said: "You rarely see it coming. They're so lovely and personable and engaging and charming. Which is how they win clients." 

Charm is deceitful; even shiny awards on a shelf are illusory. We've been reminded of that. 

But while we are left scratching our heads and wondering if we got it wrong all along, the fact remains that people in Britain still need advice. 

They need to trust their advisers and to be confident in doing so. So, advisers: how can we work together, you and FTAdviser, to help restore faith in our profession? 

Let's promote the true professionals and restore trust in the advice profession together. 

Email me: simoney.kyriakou@ft.com