Context
The FCA has taken action against an individual adviser resulting in a fine of £755,000 and a ban from the industry.
Key points to note and next actions
- Mr Breuer was the joint owner and sole Director of Bluesky Wealth Management Limited, which provided advice on investments and pensions.
- The firm did not have appropriate Professional Indemnity Insurance in place from April 2019, and Mr Breuer carried on providing pension transfer advice knowing he was not insured. Mr Breuer also misled the FCA regarding the firm’s insurance position.
- In October 2019 the FCA imposed restrictions on the firm which were intended to protect customers and the firm’s assets. Mr Breuer ignored these restrictions and took assets out of Bluesky by paying himself large dividends, taking personal loans and moving money through connected accounts.
- Mr Breuer knew that the FCA had concerns about the firm’s pension transfer advice and the Financial Ombudsman had also upheld several complaints against the firm based on the advice he had provided.
- He then placed Bluesky into an insolvency process leaving substantial customer liabilities of over £200,000 to be met by the Financial Services Compensation Scheme.
In its findings the FCA noted Mr Breuer had known he had no PII cover, failed to comply with the FCA’s requirements and acted with a lack of integrity. It imposed a fine of £755,000 and banned him from working in any regulated activity.