The Financial Conduct Authority (FCA) intends to fine and ban financial advisers Richard Fenech and Heather Dunne for their flawed defined benefit (DB) pension transfer model, which resulted in over £126 million being transferred from pension schemes, often against clients' best interests.
llenge is unsuccessful, Dunne could face a fine of nearly £400,000, while Fenech may be fined £270,000. Fenech, director of Financial Solutions Midhurst Limited (FSML), oversaw Dunne, who operated as FSML’s representative under HDIFA.
The FCA found that Dunne ignored internal compliance warnings about their two-adviser model, leading clients to unsuitable investments and prompting compensation payouts of £770,000 from the Financial Services Compensation Scheme.
Dunne inadequately prepared individual reports, showing a pattern where approximately 92% of clients were advised to transfer out of their pensions, contrary to the FCA's presumption that such actions were generally unsuitable. This included a controversial statement on Heather Dunne IFA's website that was removed after FCA intervention.
The FCA state that only where there is over whelming evidence to support a transfer should one take place and often this is simply ignored. It’s no coincidence that advisers receive commissions only following transfer of investment and this can sometimes be the motivation and not the best advice. If you think you have been wrongly advised to transfer from your DB pensions and since incurred a loss please contact us immediately.
At Smooth Commercial Law, we are dedicated to helping you navigate financial mis-selling. If you're facing losses from a pension or investment and wish to understand your options, don’t hesitate to reach out. Call us at 0800 046 9976 or email us at info@smoothcl.co.uk for a friendly, no-obligation conversation. Alternatively, fill out our quick online enquiry form, and one of our expert financial loss lawyers will get in touch with you promptly to discuss your case.
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