Alistair Rae Burns v FCA: practical implications for advisors

David E Grant, Outer Temple Chambers, comments on practical implications for financial advisors and practitioners in light of Alistair Rae Burns vs FCA.

Background

Mr Burns, the owner of Rae Burns, a financial adviser company, advised clients on transferring occupational or personal pension benefits into a self-invested pension scheme.

The FCA fined and prohibited him from performing senior management functions after failing to comply with its requirements.

Mr Burns then referred the FCA’s decision to the Upper Tribunal. The Upper Tribunal dismissed the reference but lowered the financial penalty to almost a quarter its quantum.

Mr Burns was found personally liable in that he failed to take reasonable steps to ensure that his business complied with the FCA’s relevant requirements.

David E Grant comments on the practical implications of this case in an article for LexisNexis.

David states that such a Decision is significant for those in the financial services and pensions industries. He also affirms that this Decision confirms that care must be exercised by those whose business model involves an authorised firm advising on regulated products and, additionally, an unauthorised firm advising on (unregulated) alternative investments.

David shows that the FCA will seek to prohibit individuals from performing certain functions and impose penalties, even if the individual was not the main decision-maker. Company directors cannot delegate certain aspects of the business (e.g. compliance) and then turn a blind eye.

The full article is available to read here.

David E Grant is a barrister at Outer Temple Chambers. He practises primarily in commercial law, particularly pensions and financial services. He has extensive advocacy experience in a wide range of tribunals and appellate courts.

David’s clients include leading FTSE100 companies, banking and financial instiutions and leading professional service companies and advisors. He also acts for regulatory and other statutory bodies.

Legal Blogs 19 Sep, 2018