FCA investigating 29 advisers for enforcement action

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The Financial Conduct Authority is currently investigating 29 financial adviser firms or individuals for enforcement action ranging from fraud to misselling.

Responding to a Money Marketing freedom of information request, the FCA says there are also two mortgage broker firms or individuals under investigation as of 13 May. There is also one firm under investigation that sells both mortgages and other forms of financial advice.

The enforcement actions relate to financial crime, mortgage fraud, misselling and the suitability of advice, treating customers fairly and systems and controls issues.

Advisers are also being investigated for breaches of anti-bribery and corruptions controls, competence or integrity issues, complaints handling, undertaking regulated activities without permission and promoting Ucis.

There are around 5,000 advice firms, or 14,000 firms including ARs, and around 20,500 financial advisers.  

Apfa policy director Chris Hannant says: “It is a small fraction under investigation and the level of adviser regulatory fees, around 10 per cent of all FCA fees, does not seem commensurate with the level of risk posed by the sector in light of these figures.”

Telos Solutions director Richard Farr says: “It is a small number but nobody wants to be in enforcement so one is too many. I would expect the number to rise as the FCA takes on new powers.”