Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/new-model-adviser/article/a592314
FSA plans ban for 'reckless' stockbroking boss
by William Robins on May 28, 2012 at 16:46
The Financial Services Authority (FSA) is planning to ban George Leavey, managing partner at stockbrokers First Colonial Investments (FCI), due to his 'reckless misconduct'.
The FSA claimed Leavey carried out a significant influence function without FSA approval, failed to oversee the segregation and protection of client money and approved misleading financial promotions.
Leavey was responsible for the day-to-day running of the stockbroking business and for FCI’s recommendations and sales of shares to clients, according to the regulator.
It said Leavey failed to register as an approved person, despite carrying out a significant influence role at FCI since the firm started up in 2006, and failed to identify and remedy unsuitable sales practices by FCI’s sales advisers.
The FSA said FCI held client money despite not having the relevant authorisations, adding that Leavey should have ensured client money was segregated from FCI’s own money but failed to do so.
It said at least £883,897 of client money was mixed with the firm’s own money and was used to pay business expenses at FCI and its unauthorised sister company.
Tracey McDermott (pictured), acting director of enforcement and financial crime at the FSA, said: ‘Being a managing partner of a firm carries substantial responsibility for ensuring that the firm meets its regulatory responsibilities. We believe George Leavey was reckless in his approach to many aspects of the FCI business he was responsible for running.’
Leavey has referred the matter to the Upper Tribunal. The Tribunal may uphold, vary or cancel the FSA’s decision.
News sponsored by:
Today's top headlines
- Advisers and providers split over impact of consultancy charging ban
- IFAs vent frustration at lack of re-reg progress
- Lighthouse ties up with Aviva for exclusive protection offering
- Barnett Waddingham: give trustees power to block pension liberation
- Standard Life to pay platform rebate tax for investors
More about this article:
More from us
- FSA refuses to name firms behind 600 misleading financial ads
- FCA: Fail to whistleblow and we'll come after you
- FSA fines London adviser £27,000 for client money breaches
by Brian Cantwell on May 20, 2013 at 15:02