Post by Sapphire Capital on Aug 23, 2008 3:14:27 GMT 4
FSA/PN/095/2008
20 August 2008
The Financial Services Authority (FSA) has banned Barnsley-based sole trader Darrell Mark Eaden from being a senior manager for failing to monitor effectively his pension transfer specialist. This exposed customers to the risk of receiving unsuitable advice.
Mr Eaden traded as Liberty Financial Consultants (now ceased trading) and specialised in mortgages and investments. The FSA found that, between May 2004 and March 2005, Mr Eaden:
did not exercise due skill, care and diligence in managing the business of Liberty. In particular, Mr Eaden failed to maintain an appropriate level of understanding of pension transfers and to adequately supervise and monitor the firm’s pension transfer specialist;
did not take reasonable steps to ensure that Liberty’s pension transfer business was organised so that it could be controlled effectively; and
failed to take reasonable steps to ensure that Liberty’s pension transfer business, for which he was responsible, complied with the relevant requirements and standards of the regulatory system.
Jonathan Phelan, Head of Retail Enforcement at the FSA, said:
"Firms must have in place and operate effective systems to ensure suitable advice is given to customers – this is a key part of treating customers fairly. Mr Eaden was responsible for ensuring that Liberty’s pension transfer specialist was effectively monitored, but he fell a long way short of achieving this. As a consequence he has been banned from being a senior manager.
Our action should leave firms in no doubt that the FSA places great emphasis on the importance of adequate systems and controls, and individuals responsible for those systems and controls will be held accountable if they are not adequate."
Notes to Editors
The final notice for Darrell Mark Eaden can be found on the FSA website.
Mr Eaden applied to the FSA for a change of legal entity, to set up Liberty Financial Consultants’ Limited (”the Company”). On 3 March 2006 the change of legal entity was authorised and the sole trader entity, Liberty, ceased trading. As part of the authorisation process, the Company signed an undertaking to take over all the rights and obligations of the regulated activities carried on by Liberty and its business was transferred to the Company. On 10 February 2008 the Company went into liquidation.
As both Liberty and the Company are no longer trading, the FSA has written to all customers who may have been affected saying that they may wish to seek independent advice as to whether their pension transfer was appropriate. A guide to getting financial advice is available on the FSA's website:
Customers may also wish to get advice on how to take matters forward and, if they feel they have grounds for a complaint, an Independent Financial Adviser can provide them with information on what options are open to them. Customers who would like records relating to the transaction should contact Liberty Limited via the liquidator: Butcher Woods Limited, Butcher Woods Ltd, 79 Caroline Street, Birmingham B3 1UP, 0121 236 6001. Customers who choose to complain should do so to the Financial Services Compensation Scheme ("FSCS") at the address below:
Financial Services Compensation Scheme
7th floor, Lloyds Chambers
1 Portsoken Street
London
E1 8BN
Tel: 020 7892 7300
FSCS considers claims from consumers against firms that are no longer trading if the firm (or its owners) does not have sufficient assets to pay claims itself. FSCS will determine whether there are sufficient assets to pay any claim, and whether a claim is eligible for compensation. Further details are available from FSCS.
The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.
20 August 2008
The Financial Services Authority (FSA) has banned Barnsley-based sole trader Darrell Mark Eaden from being a senior manager for failing to monitor effectively his pension transfer specialist. This exposed customers to the risk of receiving unsuitable advice.
Mr Eaden traded as Liberty Financial Consultants (now ceased trading) and specialised in mortgages and investments. The FSA found that, between May 2004 and March 2005, Mr Eaden:
did not exercise due skill, care and diligence in managing the business of Liberty. In particular, Mr Eaden failed to maintain an appropriate level of understanding of pension transfers and to adequately supervise and monitor the firm’s pension transfer specialist;
did not take reasonable steps to ensure that Liberty’s pension transfer business was organised so that it could be controlled effectively; and
failed to take reasonable steps to ensure that Liberty’s pension transfer business, for which he was responsible, complied with the relevant requirements and standards of the regulatory system.
Jonathan Phelan, Head of Retail Enforcement at the FSA, said:
"Firms must have in place and operate effective systems to ensure suitable advice is given to customers – this is a key part of treating customers fairly. Mr Eaden was responsible for ensuring that Liberty’s pension transfer specialist was effectively monitored, but he fell a long way short of achieving this. As a consequence he has been banned from being a senior manager.
Our action should leave firms in no doubt that the FSA places great emphasis on the importance of adequate systems and controls, and individuals responsible for those systems and controls will be held accountable if they are not adequate."
Notes to Editors
The final notice for Darrell Mark Eaden can be found on the FSA website.
Mr Eaden applied to the FSA for a change of legal entity, to set up Liberty Financial Consultants’ Limited (”the Company”). On 3 March 2006 the change of legal entity was authorised and the sole trader entity, Liberty, ceased trading. As part of the authorisation process, the Company signed an undertaking to take over all the rights and obligations of the regulated activities carried on by Liberty and its business was transferred to the Company. On 10 February 2008 the Company went into liquidation.
As both Liberty and the Company are no longer trading, the FSA has written to all customers who may have been affected saying that they may wish to seek independent advice as to whether their pension transfer was appropriate. A guide to getting financial advice is available on the FSA's website:
Customers may also wish to get advice on how to take matters forward and, if they feel they have grounds for a complaint, an Independent Financial Adviser can provide them with information on what options are open to them. Customers who would like records relating to the transaction should contact Liberty Limited via the liquidator: Butcher Woods Limited, Butcher Woods Ltd, 79 Caroline Street, Birmingham B3 1UP, 0121 236 6001. Customers who choose to complain should do so to the Financial Services Compensation Scheme ("FSCS") at the address below:
Financial Services Compensation Scheme
7th floor, Lloyds Chambers
1 Portsoken Street
London
E1 8BN
Tel: 020 7892 7300
FSCS considers claims from consumers against firms that are no longer trading if the firm (or its owners) does not have sufficient assets to pay claims itself. FSCS will determine whether there are sufficient assets to pay any claim, and whether a claim is eligible for compensation. Further details are available from FSCS.
The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.