The two, who were also directors of Quarters Trustees, were banned by The Pensions Regulator (TPR) in August 2009. In September the Upper Tribunal threw out an appeal against both the TPR and FSA bans on the grounds that their case was likely to fail.
A FSA investigation found that between May and June 2006 the Freedom Sipp transferred £20 million, the entirety of members’ cash holdings, from the Bank of Butterfield to Newcastle Building Society. Although permission had been sought, 150 members failed to respond and the transfer went ahead regardless.
TPR banned the two from acting as trustees on the basis they had failed to meet standards of competence, capability and financial soundness.
The FSA has banned Quarrell and Beaumont from performing any regulated activity on the basis that they are not fit and proper persons.