FCA building
An ex-adviser has been fined and banned by the Financial Conduct Authority for fabricating statements of professional standing –the first case of its kind.
Ewan King, who used to work in retail investment, will have to pay a £19,900 fine.
The documents he faked – the SPS - are used to prove that an adviser is qualified to the minimum standard put in place by the Retail Distribution Review.
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The FCA found Mr King was "not a fit and proper person, lacking honesty and integrity, and poses a risk to consumers and to confidence in the financial system".
Tracey McDermott, director of enforcement and financial crime at the FCA, said:
"Pushing up professional standards was a key objective of the RDR.
"Mr King failed not only to achieve the qualifications required by RDR but then acted dishonestly and continued advising customers.
"His conduct fell woefully short of the standard that we, and consumers, demand of those who work in the financial services industry."
Mr King had a contract with a principal firm allowing him to perform certain activities regulated by the FCA.
In early 2013, Mr King led this firm to believe that he held a statement of professional standing issued by the Chartered Insurance Institute.
When challenged to produce this, Mr King sent two fabricated documents.
The CII said Mr King had not applied for, or been issued with, a statement because he had not reached a Level 4 qualification – the minimum required. Mr King later admitted to his principal firm that he had failed the relevant exams and he was sacked.
The FCA has made no findings against Mr King's former principal firm.
Mr King agreed to settle at an early stage of the FCA's case and so qualified for a 30% discount – otherwise the fine would have been £25,734.
