The regulator has banned sole trader Craig Mitchell (Firm Reference No. 624013) of Hamilton, Lanarkshire, Scotland. Mr Mitchell has a right to appeal.

He is no longer allowed to advise on regulated business, including pension transfers and investments, after failing to pay a number of clients who successfully complained to the FOS and received compensation awards.

In a first Supervisory Notice the FCA has removed the part 4a permissions from Mr Mitchell of Hamilton, Lanarkshire, Scotland. Mr Mitchell has a right to appeal.

The FCA said that it removed Mr Mitchell’s permissions because it had identified “serious concerns” relating to Mr Mitchell. It said his conduct appears to demonstrate that he is “not a fit and proper person” and poses a significant risk of harm to consumers.

There are a total of 13 complaints against Craig Mitchell which have been upheld by the Financial Ombudsman Service where the FOS found that Craig Mitchell had provided unsuitable investment advice to his customers.

So far he has not paid redress to at least six customers despite the FOS finding in favour of their complaints against his firm.

Mr Mitchell also failed to respond to FCA correspondence requiring him to provide an explanation for his failure to pay the FOS awards made against him. The FCA added that Mr Mitchell has not satisfied the FCA that he has made adequate provision to meet his potential liabilities to customers.

Craig Mitchell is a sole trader and was authorised from January 2015.

On 6 January 2021, the FOS referred to the FCA a complaint against Mr Craig Mitchell which had reached the end of the FOS complaint process. Mr Mitchell had not complied with the award made against him even after he was advised that the case would be referred to the FCA should he fail to comply.

The FOS had upheld a complaint that the client was provided with unsuitable investment advice by Craig Mitchell in relation to a £10,000 investment in a bond offering a guaranteed return. Mr Mitchell was instructed to pay £8,102 plus interest at 8%. Additionally, Mr Mitchell had to pay £150 for the trouble and upset caused to the complainant.

In March 2021, Mr Mitchell submitted an application to the FCA to cancel his Part 4A permission on the basis that he had ceased to carry on regulated activities and to trade. He requested that the cancellation take effect immediately and stated that, “there are no assets or liabilities of the firm.”

Mr Mitchell told the FCA that he had no complaints currently under consideration with the FOS. He also admitted that he was not sure who would be looking after his customers on the assumption that his Part 4A permission was cancelled.

As at 5 April 2021, Mr Mitchell’s balance sheet showed a net asset position of £7,550, mainly cash at bank and in hand.

On 24 May 2021, the FCA informed Mr Mitchell that the FOS was currently investigating 13 complaints against him, the earliest being September 2019 and the most recent, March 2021.

On 26 August Mr Mitchell replied to the FCA that two of the cases were now closed, one was still being dealt with by him and on six cases he denied providing any investment advice to his customers. He did not provide information on the remaining four cases out of the total of 13 complaints.

The FCA told Mr Mitchell in December that because there were four complaints still being investigated by the FOS the FCA could not grant his application to cancel his permission without receiving evidence that he had professional indemnity insurance in place or sufficient funds to cover the potential costs of FOS complaints against him.

On 8 December, the FOS referred to the FCA a complaint it had upheld by two complainants that they were provided with unsuitable investment advice by Mr Mitchell in relation to a £30,000 investment. Mr Mitchell was instructed to pay compensation including interest.

On 11 April, the FOS confirmed that a total of 13 complaints have been upheld by the FOS against Craig Mitchell and he has still not paid redress to at least six complainants. A further 10 complaints were still being investigated by the FOS.

The FCA said in its notice: “Craig Mitchell’s actions to date casts serious doubts on its ability and willingness to observe regulatory requirements and demonstrate that he poses a significant risk of harm to consumers.”

Mr Mitchell has been asked by Financial Planning Today for comment.