View the article online at http://citywire.co.uk/new-model-adviser/article/a648265
Expelled Sesame IFA loses legal battle for FSA authorisation
by Michelle Abrego on Jan 03, 2013 at 12:34
A former Sesame IFA has lost an appeal to be authorised by the Financial Services Authority (FSA) after failing to tell the regulator he was expelled from the network for allowing an introducer to give regulated advice.
Sidney Cordle, sole director of Sheffield-based Scott Briscoe, took the FSA to Tribunal over its decision to refuse him authorisation after he failed to admit he had been investigated for misconduct and had his contract terminated at Sesame.
In January 2011, Sesame terminated his contract after an investigation found an unqualified introducer, Mark Foster was giving financial advice to clients with the knowledge of Cordle.
The investigation found that out of ten clients contacted two confirmed that Foster had been their adviser, three named Cordle and the rest could not remember. Some files inspected by Sesame also showed that on at least four occasions, that Cordle was aware of, Foster had forged Cordle's signature.
Foster was neither approved by the FSA or had professional indemnity insurance cover.
In February 2011 Cordle applied to be directly authorised with support services provider SimplyBiz, to which he did not fully disclose the Sesame investigation.
In April 2011 the FSA issued a warning notice indicating it proposed to reject his application. The warning notice was issued ahead of a Regulatory Decisions Committee hearing, where Cordle stated the information that he had provided to Sesame about Foster giving advice had been untrue.
The Tribunal said: 'Our conclusion is that the FSA had sound reasons for rejecting the applications for authorisation and approval. Both applications turn on the fitness and propriety of Cordle to perform the relevant controlled functions. We herefore uphold the terms of the decision notice.'
News sponsored by:
Today's top headlines
More about this article:
More from us
- Succession gains FSA approval for vertically integrated status
- Expelled Sesame IFA loses legal battle for FSA authorisation
- SimplyBiz lifts lid on post-RDR adviser proposition
by Michelle Abrego on Mar 11, 2014 at 10:45