Watchdog warns financial adviser

Last Modified: 20 Aug 2008
Source: PA News

A financial adviser has been banned from being a senior manager by the City watchdog for failing to monitor the way pension transfers were carried out.

The Financial Services Authority (FSA) said Darrell Mark Eaden, who traded as Liberty Financial Consultants, had failed to adequately supervise his firm's pension transfer specialist.

It warned that as a result of the lack of supervision, customers had been exposed to the risk of receiving unsuitable advice.

The regulator said between May 2004 and March 2005, Mr Eaden had not exercised due skill, care and diligence in managing the business of Liberty and had failed to maintain an appropriate level of understanding about pension transfers.

It added that he did not take reasonable steps to ensure the firm's pension transfer business was organised so that it could be controlled effectively and had failed to ensure it complied with regulatory requirements.

Liberty Financial Consultants, which was based in Barnsley, has since gone into liquidation.

The FSA said as the company was no longer trading, it had written to all of its customers who may have been affected, saying they may wish to seek independent financial advice on whether their pension transfer was appropriate.

It added that people who thought they had grounds for a complaint should contact the Financial Services Compensation Scheme, which handles redress claims from consumers against firms that are no longer trading.

Jonathan Phelan, head of retail enforcement at the FSA, said: "Firms must have in place and operate effective systems to ensure suitable advice is given to customers - this is a key part of treating customers fairly.

"Mr Eaden was responsible for ensuring that Liberty's pension transfer specialist was effectively monitored, but he fell a long way short of achieving this. As a consequence he has been banned from being a senior manager."

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