UK financial adviser fined, banned over dishonest investment advice
LONDON (Reuters) - A former senior partner at St James's Place, a UK wealth manager, has been fined and banned for persuading clients to invest millions of pounds in companies in which he had an interest, which then went into liquidation.
The Financial Conduct Authority (FCA), which is cracking down on financial advisers, said on Tuesday it had fined Peter Carron 300,000 pounds ($485,340) for failing to adequately disclose his interest in three companies and misleading 11 clients about the companies' performance between 2004 and 2010.
The subsequent failure of the companies, in which Carron was a director and majority shareholder, prompted the clients to lose around 2.2 million pounds and forced St James's Place to pay out 1.9 million pounds in compensation.
"People go to advisers because they want expert help on how to make the most of their money. They are entitled to expect that their adviser will act in their best interests, not his own," said Tracey McDermott, head of financial crime and enforcement at the FCA.
The FCA said Carron continued to reassure investors and advise them to invest even when he know his companies were in financial difficulties. He also said the investments were approved or endorsed by St James's Place, which was untrue.
Carron, who was banned by the FCA from holding influential or client-facing positions in financial services, was also last month banned by the High Court for 13 years from acting as a director or managing or controlling a company.
St James's Place, which was sold by majority owner Lloyds Banking Group last December, has not been criticised over this matter.
(Reporting by Kirstin Ridley; Editing by Mark Potter)
