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FCA bans and fines two advisers £28k each for Ucis misselling
by James Phillipps on Aug 16, 2013 at 11:17
The Financial Conduct Authority (FCA) has fined two advisers £28,000 apiece and banned them from performing ‘significant influence functions’ for misselling failed Ucis funds.
John Leslie and Jeffrey Bennett held controlled functions at London-based advisory firms Leslie & Nuding, which is now called Leslie & Swallow, and Burlington Associates.
The FCA said in 2005, the two firms helped promoted three unregulated collective investment schemes (Ucis) to over 800 retail investors, who invested £30 million between them before the funds all failed.
The FCA found the pair failed to exercise appropriate due diligence and they have now been banned from holding any 'significant accountable influence function' at a regulated firm. Leslie and Bennett were initially fined £40,000 each but this was reduced by 30% to £28,000 after they agreed to settle early.
The regulator said other enforcement proceedings 'connected to these matters' are ongoing. The FCA published its final rules to ban the promotion of Ucis funds to retail investors in June.
Bill Sillett, head of FCA retail enforcement, said: 'The lax attitude of Leslie and Bennett to their duties was particularly unacceptable when you consider that their firms were involved in promoting the UCIS to thousands of mainstream retail consumers.
'This is another example of why we are toughening the rules around how such schemes can be promoted.'
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