The Upper Tribunal has upheld the Financial Conduct Authority’s decision to fine two former directors of CFP Management Ltd for their roles in operating a “flawed” pension transfer advice model.
Toni Fox and David Brian Price have been fined £567,584 and £465,415 respectively, after advising on 1,470 pension transfers worth more than £392m between April 2015 and October 2017.
The tribunal also upheld the FCA’s decision to ban both individuals from working in financial services and to revoke their senior management approvals.
The pair, who had decades of experience in the sector, were found to have personally designed and operated an advice model that led to unsuitable pension transfers — including for members of the British Steel Pension Scheme — in breach of FCA rules.
The tribunal ruled that the model posed a serious risk to consumers, and that both individuals lacked the integrity required for regulated roles.
The FCA had originally proposed higher penalties of £681,536 for Fox and £632,594 for Price, but these were revised following guidance on tax and interest calculations earlier this year.
The final fines reflect updated financial information provided by the advisers.
Therese Chambers, executive director of enforcement and market oversight at the FCA, said: “The tribunal’s ruling confirms that both individuals are unfit for roles in regulated firms. Their reckless actions fell far below the expected standards in financial services.”
