Context
The FCA imposed a number of restrictions on Campbell & Associates Independent Financial Advice Ltd preventing it from carrying out any regulated activities and restricting access to its assets due to concerns about the potential misappropriation of client funds by the firm.
Key points to note
In July 2022, a consumer transferred a total of £1.5 million to the firm’s bank account having accepted the Firm’s advice to invest in bonds due to mature in January 2023, even though the firm does not have permission to hold client funds. The consumer was told that the funds were to be invested in bonds issued by a bank and the firm provided the consumer with a number of documents seeking to prove that the investment had been made. However, the bank has confirmed that it does not offer such bonds and has no record of any investment relating to this consumer having been made.
The FCA obtained the Firm’s own bank statements, and an analysis of those statements shows that, contrary to what the consumer had been told, the funds were not invested in any kind of investment. In fact, the statements appear to show that between July 2022 and January 2023, the consumer’s funds were transferred to the personal accounts of the Firm’s director or otherwise used to purchase a property for the Firm’s director to live in.
Next actions
None – for information and awareness.