FSA cases to be challened in Upper Tribunal

The FSA has for the first time published two decision notices for enforcement decisions that have been referred to the Upper Tribunal. They had been made public under a power given to the FSA by Parliament in 2010. 

Stuart Unwin and Derek Wright have both referred their cases and will now present their cases to the Tribunal, as will the FSA. 

The Tribunal will then determine the appropriate action for the FSA to take. The Tribunal may uphold, vary or cancel the FSA’s decision. The Tribunal’s decision will be made public on its website.

The date for these hearings will be set in due course.

In the case of Stuart Unwin, in a decision notice dated March 2, 2011, the FSA set out its decision to prohibit Unwin from holding a significant influence function on the basis that he is neither competent nor capable to do so.

In the FSA’s opinion, Unwin failed to ensure his firm had adequate systems and controls to ensure that occupational pension transfer advice given by his firm was suitable and signed off by a pension transfer specialist, despite being previously warned by the FSA that he must do this. 

The FSA also considers that Unwin delegated compliance responsibilities to an individual whom Unwin knew lacked experience but he failed to check the standard of their work. The FSA also considers Unwin failed to ensure the effective monitoring of his sales staff, including trainee advisers.

In the case of Derek Wright, in a decision notice dated February 23,  2011, the FSA set out its decision to prohibit Wright from all regulated activity, on honesty, integrity and competence grounds. The FSA believes Wright was unwilling to comply with the FSA approved person regime and provided misleading information to the FSA.

In the FSA’s opinion, he arranged for his wife, Mary Wright, to take on the FSA approved roles while he actually ran the firm, Moorgate Insurance Agencies, a small insurance broker.

Mrs Wright had no involvement in the running of the business at Moorgate and did not exercise her function as a director properly.

Wright had previously been disciplined by Lloyds of London in 2001 and the FSA believes that this would have been a highly relevant factor in its assessment of his fitness if he applied for approved person status.

Mrs Wright agreed to be prohibited from all regulated activity. She has not referred her case to the Tribunal.