The Financial Services Authority (FSA) has removed the Part IV permissions of Chelmsford-based adviser Argentum Lex Wealth Management after it failed to pay a Financial Ombudsman Service award made against predecessor firm Wynyard Asset Management.
The FSA said that Argentum had provided a formal undertaking to comply with requirements to pay any FOS awards Wynyard, which has been dissolved.
It said in its final notice on Argentum that the firm had ‘failed to comply with an award made against Wynyard by the FOS on 16 June 2011, despite repeated requests by the FOS and the FSA that it do so’.
‘Argentum has failed to satisfy the FSA that it is conducting its business soundly and prudently and in compliance with proper standards,’ it added.
New Model Adviser® revealed in December last year that Argentum had won a court battle over a £240,000 claim related to Wynard. Liquidators for Wynyard had agreed the firm would pay client John Giannotti £243,511 over his complaint about a pension transfer. Giannotti had been told by the FOS to pursue the claim through the courts, but lawyers for Argentum successfully argued the firm should not pay the claim.
It is not clear whether the FSA’s decision relates to the Giannotti case.