Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said Quilter was a “model example” of how to behave.

In a speech given at the City & Financial FCA Investigations and Enforcement Summit today, Ms Chambers said the FCA decided, in a “highly unusual” move, not to fine Lighthouse due to Quilter’s handling of the incident.

She said: “Quilter took responsibility for the unsuitable advice given – advice that had been given before it had acquired Lighthouse.

“Quilter also took responsibility for improving the inadequate control framework that they found.”

Earlier this month the FCA censured Quilter-owned Lighthouse Advisory Services Limited for serious advice failings in relation to the British Steel Pension Scheme (BSPS) which resulted in £23m paid in redress to clients.

The watchdog censured Lighthouse for unsuitable advice given between 1 April 2015 and 30 April 2019.

Lighthouse advised people looking to transfer out of defined benefit pension schemes, including members of the BSPS.

During the period, Lighthouse advised 1,567 customers, 262 of whom were members of the BSPS.

Quilter Financial Planning acquired Lighthouse in June 2019, after the unsuitable advice was given.

Ms Chambers also used hr speech to slam "self-interested criticism" of the regulator’s Woodford Equity Income redress deal and urged investors in the fund to "seriously consider" voting for the redress scheme.

Ms Chambers said: "We wish every pound could be recovered. Although the redress scheme does not cover all losses, we consider it is in the interests of investors to seriously consider it.

"The proposed scheme offers investors the best chance to obtain a better outcome than might be achieved by any other means.”